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. 246 Original Sheet No. 246

 

GENERAL TERMS AND CONDITIONS

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30.2 AWARD OF FIRM CAPACITY

 

To the extent the revenue level pursuant to the Negotiated

Rate(s) or Negotiated Rate Formula provided for in Section 30.1 above

should equal or exceed the revenue level at the Recourse Rate, the

Shipper paying such Negotiated Rate(s) or rate(s) under a Negotiated

Rate Formula shall be treated, for capacity award purposes, as if the

rate(s) paid had been equal to the Recourse Rate. Any Shipper,

existing or new, paying the Recourse Rate(s) has the same right to

capacity for capacity award purposes as a Shipper willing to pay an

equal or higher Negotiated Rate(s) or rate(s) under a Negotiated Rate

Formula. If the Negotiated Rate or the rate under a Negotiated Rate

Formula are always higher than the corresponding Recourse Rate, the

Recourse Rate rather than the Negotiated Rate will be used as the

price cap for release capacity pursuant to Section 14.8 of these

General Terms and Conditions and for the Right of First Refusal

pursuant to Section 16.2 of these General Terms and Conditions. Where

the Negotiated Rate(s) or rate(s) under a Negotiated Rate Formula

results in revenue which is greater than the Recourse Rate during

certain portions of the relevant evaluation period but less than the

revenue at the Recourse Rate during other portions of the relevant

evaluation period (but the revenue pursuant to the Negotiated Rate(s)

or rate(s) under a Negotiated Rate Formula equals or exceeds that

which would be generated at the Recourse Rate for the entire

evaluation period), the value of bids and requests at the Negotiated

Rate(s) or rate(s) under a Negotiated Rate Formula for capacity award

purposes shall be evaluated as though the Recourse Rate applied under

such bid or request for the entire evaluation period. Where the

Negotiated Rate(s) or rate(s) under the Negotiated Rate Formula result

in revenue which is less than revenue at the Recourse Rate over the

relevant evaluation period, the value of the bids or requests at the

Negotiated Rate(s) or rate(s) under the Negotiated Rate Formula for

capacity award purposes shall be evaluated based on such lower revenue

and shall be afforded a correspondingly lower priority in a capacity

award procedure than bids or requests at the Recourse Rate.

 

30.3 ACCOUNTING FOR COSTS AND REVENUES

 

The allocation of costs to and the recording of revenues

from service at Negotiated Rate(s) or under a Negotiated Rate Formula

will follow KMLP's normal practices associated with all of its

services under this Tariff. KMLP will maintain separate records of

Negotiated Rate and Negotiated Rate Formula transactions for each

billing period.