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Original Sheet No. 276 Original Sheet No. 276 : Superseded

 

GENERAL TERMS AND CONDITIONS (continued)

(g) Reservations

 

This Section 17.4 shall not be construed to affect

Kansas Pipeline's right to recover from Buyer such

Transition or other costs as it may incur in

connection with contracts with suppliers of natural

gas or otherwise, such rights being expressly

reserved, subject to applicable Commission orders

and regulations. Kansas Pipeline reserves the right

to reallocate the charges for which provision is made

hereunder, in the event these charges shall be

determined to be ineffective.

 

17.5 Recovery of Stranded Transportation Costs

 

(a) Purpose

 

This Section 17.5 establishes the means by which

Kansas Pipeline shall recover stranded third-party

transportation costs as defined below, in accordance

with FERC Order No. 636 et seq., using reservation and

volumetric surcharges.

 

(b) Applicability

 

The Stranded Transportation Cost Reservation and

Volumetric Surcharges shall apply as specified

herein below commencing with the effectiveness of this

Section 17.5 and continuing for an initial period of

three (3) years to those shippers served under any firm

Rate Schedules thereafter for such time as is

described in Section 17.5(g).

 

(c) Definitions

 

The following defines certain terms as they are used

in this Section 16.5:

 

(1) "Stranded Transportation Costs" or "ST Costs"

shall mean the aggregate of actual payments made

by Kansas Pipeline under contractual obligations