Kinder Morgan Louisiana Pipeline LLC

Original Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-257-000, Status: Effective

Original Sheet No. 149 Original Sheet No. 149

 

GENERAL TERMS AND CONDITIONS

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9. OVERRUN AND UNAUTHORIZED GAS CHARGES AND PENALTY REVENUE

 

9.1 AUTHORIZED OVERRUN CHARGES

 

If deliveries to a Shipper exceed its MDQ under an

Agreement but represent volumes properly nominated and confirmed, an

Authorized Overrun Charge shall apply. The applicable maximum

Authorized Overrun Charge for transportation under Rate Schedule FTS

shall be a maximum Authorized Overrun Rate determined as the 100%

load factor derivative of the maximum reservation and commodity

rates. The maximum Authorized Overrun Rate under Rate Schedule ITS

shall equal the maximum rate for Rate Schedule ITS multiplied by the

number of Dth of the Authorized Overrun Gas. Such Authorized Overrun

Rates may be discounted on a non-discriminatory basis to any level

between zero and the maximum Authorized Overrun Rate or may be

determined pursuant to a Negotiated Rate or Negotiated Rate Formula

agreement.

 

9.2 UNAUTHORIZED GAS CHARGES

 

In light of Shipper's obligations to remain in balance

under Section 10 of these General Terms and Conditions, to the

extent that Delivery Point imbalances are not accommodated under an

OBA, an Unauthorized Gas Charge set out herein shall apply to all

volumes taken at Delivery Points in excess of confirmed nominations,

under either an FTS Agreement or an ITS Agreement. Swings

accommodated under an OBA shall not be subject to a charge under

this provision. If an Unauthorized Gas Charge applies, the Shipper

shall pay KMLP an Unauthorized Gas Charge equal to the volume of the

Gas the Shipper delivered in excess of confirmed nominations

multiplied by the Unauthorized Gas Rate. The maximum Unauthorized

Gas Rate is twice the maximum rate under Rate Schedule ITS;

provided, however, that the Unauthorized Gas Rate may be discounted

to any level between zero and this maximum rate or may be determined

pursuant to a Negotiated Rate or Negotiated Rate Formula agreement.