Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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Effective Date: 12/01/2007, Docket: RP08- 34-000, Status: Effective

Original Sheet No. 152 Original Sheet No. 152 : Effective






(d) (1) The physical facilities of the third party

provider(s) (or used by such third party or parties) to perform the

imbalance management must include physical storage facilities and

must be directly connected to KMIP's facilities and the storage

facilities must be in close enough physical proximity to KMIP's

system to support, and of a type capable of supporting, the

operational effects necessary to perform imbalance management, which

may require almost instantaneous operational changes on KMIP.


(2) Bi-directional flow must be available at the

delivery and/or receipt points involved.


(3) The third party provider(s) must have the

ability to get gas onto or off of KMIP's system in order to

effectuate a true physical balancing.


(4) The firm Shipper or third party provider(s)

may utilize services on another entity to perform imbalance

management so long as all conditions of this Section 10.7 are

satisfied; provided, however, that if any such entity is relying on

facilities it does not own or control, the entity which does own or

control those facilities must become a party to the Third Party

Balancing Agreement.


(e) If KMIP is required to backstop the third party

service provider(s), either by agreement or because the imbalance

management services specified by the Third Party Balancing Agreement

are not performed, KMIP must be authorized to assess charges and

penalties against Shipper, the third party provider(s), or both,

and the Third Party Balancing Agreement shall so provide.


(f) The Third Party Balancing Agreement will terminate

if the Shipper no longer has firm service on KMIP under the firm

Agreements specified in the Third Party Balancing Agreement.