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. 158 Original Sheet No. 158

 

GENERAL TERMS AND CONDITIONS

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10.9 PURCHASE AND SALE OF GAS

 

KMLP is not providing a supply service under any Rate

Schedule of this Tariff. Nevertheless, without limitation of the

foregoing, KMLP may buy and sell Gas to the extent necessary to

maintain System pressure, to balance the system as necessary to assure

KMLP's ability to perform and to continuing performing firm service,

to implement the cashout procedures under this Section 10 and to

perform other functions in connection with providing transportation

service and operating its transmission System. The point of any such

sale shall occur at existing Receipt or Delivery Points on the KMLP

System. Such sales shall be authorized pursuant to KMLP's blanket

sales certificate. Nothing herein shall impose on KMLP any obligation

to provide a supply function to any of its Shippers. In any such

instance, on the next Monthly invoice, KMLP will reflect the purchase

and sales amounts as an additional charge or credit, as applicable.

The amounts reflected shall be supported by information which show

that the price was reasonably consistent with one or more price

indices commonly utilized in the industry for the area or by a

detailed explanation as to why the available indices were not

appropriate under the circumstances.

 

10.10 THIRD PARTY BALANCING

 

At any time during the term of its firm Agreement(s) on

KMLP, a firm Shipper may request that KMLP enter into a Third Party

Balancing Agreement. A Third Party Balancing Agreement is a contract

executed by KMLP, the firm Shipper and one or more third parties which

agree to manage imbalances of that Shipper under specified firm

Agreement(s) on KMLP. KMLP will enter into a Third Party Balancing

Agreement, subject to the following conditions:

 

(a) The third party provider(s) must obtain all requisite

regulatory approvals of any service (certification, approval of

tariffs, establishment of rates, etc.) which is being relied upon to

perform the imbalance management;

 

(b) The Third Party Balancing Agreement must be executed

by KMLP, the firm Shipper and any third party performing imbalance

management. The Third Party Balancing Agreement must allow the third

party imbalance management to be integrated into KMLP's operations.