Kansas Pipeline Company

Original Volume No. 1

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Effective Date: 05/11/1998, Docket: CP96-152-009, Status: Effective

Original Sheet No. 216 Original Sheet No. 216 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

7.1 Order For Accommodating Firm Service Rights

(a) Subject to the provisions of Section 7.2 hereof,

as firm capacity becomes available for

Transportation, requests for firm services shall

be fulfilled first, commencing with the requested

service offering the greatest economic value for

the capacity available. If the economic values,

as determined below, of separate service

requests are equal, then service shall be offered

in sequence starting with the request for such

service with the earliest date. If separate service

requests have equal economic values and the same date

of request, service shall be offered to such

requests on a prorata basis.

 

(b) The economic value of request(s) for service

rights shall be the net present value of the

reservation charges, capacity charges and

deliverability charges that Shipper would pay

at the rates Shipper has requested, which shall

not be less than the minimum nor greater

than the maximum rates as stated on the

currently effective Tariff Sheet governing such

service, over the term of service specified in

the request(s), utilizing as the annual discount

factor the overall rate of return underlying Kansas

Pipeline's currently effective rates.

 

(c) Within thirty (30) Days of the date firm capacity

becomes available on a particular segment of Kansas

Pipeline's system, Kansas Pipeline shall tender

Service Agreements to potential Shipper(s) whose

request(s) for firm service can be accommodated

through the capacity that becomes available in

accordance with the order established under

Section 7.1(a).

 

If Kansas Pipeline tenders a Service Agreement, but

does not receive the executed Service Agreement

within 30 Days from the date the Service Agreement

is sent, the request for service rights shall expire

without prejudice to the prospective Shipper's right

to submit a new request for service rights. In the

event the prospective Shipper returns a Service