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. 152 Original Sheet No. 152

 

GENERAL TERMS AND CONDITIONS

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10. IMBALANCES

 

10.1 RESPONSIBILITY FOR BALANCING

 

KMLP will attempt to enter into OBAs at Delivery Points

which deal with imbalances. If an OBA is not feasible or the

imbalance is beyond the terms of the OBA, however, in addition to

delivering and receiving volumes of Gas in conformance with

nominations, Shippers are responsible for conforming their takes at

Delivery Points with their deliveries to KMLP at Receipt Points each

Day. KMLP has no obligation to deliver for the account of a Shipper

more volumes of Gas than KMLP has received for the account of the

Shipper or to accept for the account of the Shipper more volumes of

Gas than are being delivered for the account of the Shipper on any

Day. Subject to the remainder of this Section 10, it is generally

the intent that imbalances be rectified by Shipper providing or

taking gas in kind.

 

10.2 MAXIMUM AGGREGATE IMBALANCE

 

(a) KMLP's System does not include any storage and only

limited line pack. Consequently, KMLP is able to accommodate only

very limited imbalances between daily receipts and deliveries

beyond, imbalance volumes covered by an OBA. KMLP will post for

each nomination cycle the System Aggregate Imbalance which it can

accommodate over Leg 1, which under normal operating circumstances,

is expected to be approximately 50,000 Dths when Leg 1 is operating

at a 70% load factor. As the utilization level on Leg 1 increases,

it is expected that the System Aggregate Imbalance level would

decrease. Also, if the utilization level on Leg 1 decreases, it is

expected that the System Aggregate Imbalance level would increase.

Previous imbalance or Payback activity will increase or decrease the

available System Aggregate Imbalance level for a given cycle. The

volume posted will represent all the flexibility which KMLP has

available on its System, based on objective engineering models,

without jeopardizing its ability to perform firm services over the

period before Payback would be effectuated as described in this

Section 10. The minimum System Aggregate Imbalance will be 4,000

Dth and shall be available to Shippers allocated based on MDQ.

System Aggregate Imbalance volumes over 4,000 Dth posted during