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. 159 Original Sheet No. 159

 

GENERAL TERMS AND CONDITIONS

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(1) KMLP must have the right to call on the third

party provider(s) for the agreed imbalance management on short

notice, within defined parameters, to effectuate necessary

operational changes.

 

(2) KMLP must be given timely notice of the nature

and level of the imbalance management being provided by the third

party provider(s) pursuant to the Third Party Balancing Agreement on

any Day.

 

(3) The Third Party Balancing Agreement must: (i)

define the operational changes the third party provider(s) will

effectuate to offset the operational effects on KMLP of imbalances at

points on the System covered by the Third Party Balancing Agreement;

and (ii) identify the resources or services which the third party

provider(s) will utilize to implement such changes.

 

(4) Any third party providing imbalance management

must be able to deliver or receive Gas, as applicable, at the

prevailing operating pressure on KMLP's System at the relevant

point(s) and the Third Party Balancing Agreement must so specify.

 

(c) The Third Party Balancing Agreement shall specify

the firm Agreements and the points to be balanced and must set out

the Agreement of the parties as to how imbalances are to be allocated

to and accounted for at the point(s) covered by the Third Party

Balancing Agreement and any limitations on the level of imbalances to

be managed under the Third Party Balancing Agreement.

 

(d) (1) The physical facilities of the third party

provider(s) (or used by such third party or parties) to perform the

imbalance management must include physical storage facilities and

must be directly connected to KMLP's facilities and the storage

facilities must be in close enough physical proximity to KMLP's

System to support, and of a type capable of supporting, the

operational effects necessary to perform imbalance management, which

may require almost instantaneous operational changes on KMLP.

 

(2) Bi-directional flow must be available at the

Delivery and/or Receipt Points involved.

 

(3) The third party provider(s) must have the

ability to get Gas onto or off of KMLP's System in order to

effectuate a true physical balancing.