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. 215 Original Sheet No. 215

 

GENERAL TERMS AND CONDITIONS

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16. PRE-GRANTED ABANDONMENT, CONTRACT ROLLOVERS AND RIGHT OF FIRST

REFUSAL

 

16.1 GENERAL

 

Subject to Section 16.3, service performed by KMLP under

Part 284 of the Commission's Regulations shall expire, and shall be

automatically abandoned, upon contract termination under: (a) any

FTS transportation Agreement with a primary term of less than one (1)

Year; and (b) any ITS transportation Agreement regardless of term.

Service under any FTS transportation Agreement with a term of one (1)

Year or greater shall expire, and shall be automatically abandoned,

on contract termination unless service is continued pursuant to

Sections 16.2 or 16.3. Rights under this Section 16 shall not be

available to the extent provided in Section 2.1(b)(7) of these

General Terms and Conditions (relating to interim time period

contracts). Rights hereunder shall also not apply to any FTS

Agreement applicable to service for the Presold Period.

 

16.2 RIGHT OF FIRST REFUSAL

 

(a) Any Shipper under a firm service Agreement with a

term of one (1) Year or greater shall have the right to continue

receiving service after the expiration of its existing Agreement to

the extent consistent with this Section 16.2 setting out the Right of

First Refusal procedure. The prior sentence shall include any such

firm Agreement which incorporates a Negotiated Rate or Negotiated

Rate Formula. KMLP shall set out in the posting described in

subsection 16.2(b) below the forms of bids which may be submitted in

the Right of First Refusal. Bids may always be submitted in the rate

form underlying the applicable maximum rate. Bids in the form of a

Negotiated Rate or Negotiated Rate Formula may only be submitted if

permitted in the posting. A match by the existing Shipper must be

made in a bid form permitted under the posting. KMLP shall not be

required to provide service under the Right of First Refusal

procedure at a discount from the applicable maximum rate unless it

otherwise agrees. If a bid is submitted for a Negotiated Rate or

Negotiated Rate Formula, the value of that bid for evaluation

purposes shall be capped at, and the existing Shipper need only

match, the lesser of the value of the bid at the Negotiated Rate or

Negotiated Rate Formula or the value of that bid utilizing the

Recourse Rate in lieu of the Negotiated Rate or Negotiated Rate

Formula.