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. 171 Original Sheet No. 171
GENERAL TERMS AND CONDITIONS
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meets the criteria set out in this paragraph. The costs of
establishing and maintaining the escrow account shall be borne by
Shipper. The escrow bank must be rated at least AA or better and
shall not be affiliated with Shipper. The escrow arrangement shall
provide for the prepayment amounts to be applied against the
Shipper's obligation under its service agreement(s) with KMLP and
shall grant KMLP a security interest in such amounts as an assurance
of future performance. The escrow agreement shall specify the
permitted investments of escrowed funds so as to protect principal,
and shall include only such investment options as corporations
typically use for short-term deposit of their funds. Such escrow
account shall at all times maintain the amount of prepayments
required under Section 12.1(b) of these General Terms and
Conditions. If KMLP is required to draw down the funds in escrow, it
will notify the Shipper and Shipper must replenish such funds within
three (3) Business Days after such notice.
(d) In the event KMLP constructs new lateral
facilities to accommodate a Shipper, KMLP may (unless otherwise
agreed) require from the Shipper security in an amount up to the
cost of the facilities. This provision does not apply to mainline
expansions. Such security may be in any of the forms available under
Section 12.1(b) of these General Terms and Conditions, at Shipper's
choice. KMLP is only permitted to recover the cost of facilities
once, either through rates or through this provision. As KMLP
recovers the cost of these facilities through its rates, the
security required shall be reduced accordingly. Specifically,
collateral provided by Shipper related to new facilities shall be
returned to that Shipper in equal Monthly amounts over the term of
its contract for service related to the new facilities or as
otherwise mutually agreed by KMLP and Shipper. Where facilities are
constructed to serve multiple Shippers, an individual Shipper's
obligation hereunder shall be for no more than its proportionate
share of the cost of the facilities. This requirement is in addition
to and shall not supersede or replace any other rights that KMLP may
have regarding the construction and reimbursement of facilities.
(e) KMLP may not take any action under this
Section 12.1 which conflicts with any order of the U.S. Bankruptcy
Court.
12.2 (a) (1) If at any time KMLP reasonably
determines based on adequate information available to it that a
Shipper is not creditworthy under Section 12.1(a) of these General
Terms and Conditions or if Shipper fails to maintain assurance of