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. 205 Original Sheet No. 205

 

GENERAL TERMS AND CONDITIONS

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(c) If a Replacement Shipper or Subreplacement Shipper

does not make payment to KMLP of the reservation portion of the

charges due as set forth in its Released Firm Transportation

Agreement, KMLP shall bill the Releasing Shipper(s) from whom such

Replacement or Subreplacement Shipper received the capacity for the

amount(s) due, including all applicable late charges authorized by

KMLP's Tariff, and such amount shall be paid by such Releasing Shipper

within ten (10) days of the receipt of such billing, or interest shall

continue to accrue. In the event that the Replacement or

Subreplacement Shipper has not paid such amount(s) due by the end of

such ten (10) day period, then: (1) the Releasing Shipper has the

right to recall the capacity; and (2) KMLP's rights against the

delinquent Replacement/Subreplacement Shipper shall be subrogated to

the related rights of the Releasing Shipper. KMLP shall make a

reasonable effort to collect from the Replacement/ Subreplacement

Shipper the amount(s) due. Such reasonable effort shall not include

incurring costs from outside attorneys, collection agents or other

third parties.

 

(d) All payments received from a Replacement or

Subreplacement Shipper shall first be applied to reservation charges,

then to late charges on reservation charges, then to scheduling

charges and cashout amounts, then to late charges not on the

reservation charges, and then last to commodity-based charges. Except

as may otherwise be provided pursuant to Section 30.4 of these General

Terms and Conditions, payments by Replacement or Subreplacement

Shippers in excess of the total amount(s) due for the Released Firm

Transportation Agreement capacity shall be a credit applied to any

outstanding balance owed under any contract with KMLP, or a refund if

requested in writing and no such outstanding balance exists.

 

(e) REFUNDS DUE UNDER RELEASES GREATER THAN ONE (1) YEAR

 

If KMLP is obligated to refund any amounts

attributable to reservation charges for capacity which has been

released under releases greater than one (1) year, KMLP shall make the

applicable refund to the Replacement Shipper to the extent that KMLP

has actually received reservation charge amounts from the Replacement

Shipper in excess of the amounts assessable under the revised maximum

reservation charge rates (which amounts are credited to the account of

the Releasing Shipper under Section 14.13(d) above). Except as may

otherwise be provided pursuant to Section 30.4 of these General Terms

and Conditions, KMLP shall make a corresponding adjustment to the

capacity release credit provided to the Releasing Shipper, and may

reflect the reduced capacity release credit in a lower refund or

adjusted billings to the Releasing