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. 153 Original Sheet No. 153

 

GENERAL TERMS AND CONDITIONS

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each nomination cycle shall also be available and allocated to

Shippers based on MDQ. This System Aggregate Imbalance will be

allocated among all firm Agreements on the KMLP System, prorated

based on MDQ. This figure, determined on a contract by contract

basis, is the Shipper's Maximum Aggregate Imbalance. In the event

that, on any Agreement, the Shipper's actual aggregate imbalance

exceeds the Shipper's Maximum Aggregate Imbalance, then Shipper

shall be required to eliminate such imbalance as provided in

Sections 10.4 through 10.10 hereof, provided that the imbalance

still exceeds the Shipper's Maximum Aggregate Imbalance after

application of the netting and trading procedures in Section 10.3.

Any swing capability available under OBAs at Delivery Points shall

be in addition to this posted flexibility and shall not be

considered an imbalance under any Agreement.

 

(b) Within ninety (90) days after the pipeline has been

in-service for a period of twelve (12) Months and each Year

thereafter, KMLP shall conduct a meeting with its Shippers having

currently effective FTS Agreements (and, if applicable, their

consultants which sign confidentiality agreements) (i) to evaluate

the administration of this Section 10 in the preceding twelve (12)

Months and (ii) to consider whether any prospective modifications to

this Section 10 are appropriate in light of operating experience and

anticipated future conditions on the System in order to assure that

Shippers are provided with greatest degree of balancing flexibility

practicable without adversely impacting the reliability of firm

transportation service on the System. Such review shall include for

selected periods within the relevant twelve (12) Month period

information relevant to the determination of the System's ability to

accommodate imbalances, including the assumptions and data used to

derive imbalance calculations under KMLP's hydraulic model (subject

to appropriate confidentiality measures if necessary) and the

impacts of any OBAs. If KMLP and its Shippers agree to such

modifications, KMLP shall seek Commission approval to implement such

modifications.

 

10.3 NETTING AND OFFSETTING OF IMBALANCES

 

To the extent the net receipts (with the appropriate

deductions for Unaccounted For Gas, Line Heater Gas and Fuel Gas) do

not equal deliveries under an Agreement on a Dth basis, the

following netting and offsetting procedures will apply: