130955490-KM Border Pipeline: KinderMorgan Natural Gas Pipelines

It is the policy of the FERC to prohibit discounting of fuel without their prior authorization. Please refer to Natural Gas Pipeline's tariff for the Fuel and Retention factors that shall be used.

Natural is a major interstate transporter of natural gas and provider of natural gas storage services. With over 10,000 miles of pipelines and 265 billion cubic feet of working gas storage capacity, Natural’s system transports gas from major United States and Canadian producing areas to Midwest markets as well as other pipelines serving North America. Natural offers firm and interruptible transportation and storage services and also offers balancing service for managing supply portfolios.

Natural is a limited liability company, which is owned by NGPL PipeCo LLC, a Delaware limited liability company. Knight Inc, a Kansas corporation, owns 100% of the stock of NGPL HoldCo Inc., which in turn, owns 20% of the membership interests in NGPL PipeCo LLC, and operates Natural. Myria Acquisition Inc. owns 80% of the membership interests in NGPL PipeCo LLC. Myria Acquisition is a wholly-owned subsidiary of Myria Holdings Inc., which in turn, is owned by a group of investors. Such investors are as follows:

Babcock & Brown Infrastructure Ltd., Australia	33.0 percent
Babcock & Brown North American Infrastructure Fund	25.2 percent
Public Sector Pension Investment Board, Canada	20.4 percent
Additional investors each owning an interest of less than ten percent	21.4 percent

FTS:	Firm Transportation Service
FFTS:	Flexible Firm Transportation Service
ITS:	Interruptible Transportation Service
DSS:	Delivered Firm Storage Service
FRSS:	Firm Reverse Storage Service
NSS:	Nominated Firm Storage Service
BESS:	Best Efforts Storage Service
IBS:	Interruptible Balancing Service
PALS:	Park and Loan Service
LPS:	Line Pack Service

For information and pricing about PALS and LPS, contact:		Paul Robey, (713) 369-9312
For information and pricing about all other services, contact:		Dave Weeks, (630) 725-3030 Donette Bisett, (713) 369-9316

For information about pipeline scheduling and contract administration, contact:		Gene Nowak, (713) 369-9329 Scheduling Hotline, (713) 369-9683

For information about credit worthiness, contact:		Ralph Lohr, (630) 725-3213, Ralph_Lohr@kindermorgan.com Lisa Szostak, (630) 725-3033, Lisa_Szostak@kindermorgan.com



(FTS) Firm Transportation Service Rate Schedule FTS is Natural’s traditional firm transportation service. A Shipper contracts for specific receipt point(s) and delivery point(s) which define its primary path. In addition to certain basic characteristics (i.e., flexible receipt and delivery points, segmentation, capacity release, the ability to delegate capacity to an agent, etc.), FTS offers Shippers two key options: (1) a system-wide service (SW) option to access points anywhere on Natural’s system, and (2) a no-notice balancing (NB) option when combined with Nominated Storage Service (NSS).

(FFTS) Flexible Firm Transportation Rate Schedule FFTS is a variant of Rate Schedule FTS. Service under FFTS provides flexibility in that parties can define limitations on when service is available. Under FFTS, Natural and the Shipper would agree upon the minimum and maximum number of days during a period when Natural would be obligated to provide service (“Available Days”). The FFTS agreement may specify that certain days be pre-designated as days which would not be Available Days (i.e., weekends, holidays, etc.). Natural has specific notification obligations in the event that a particular day is to be declared a Non-Available Day. The FFTS agreement may also specify whether Natural could implement a “Partial Available Day”. A Shipper only pays for FFTS on days on which the service is an “Available Day”. An FFTS Shipper may also elect the SW or NB options.

(ITS) Interruptible Transportation Service Rate Schedule ITS defines Natural’s basic interruptible transportation service. ITS agreements cover all of Natural’s receipt and delivery points on Natural’s system.

(DSS) Delivered Firm Storage Service Rate Schedule DSS is a no-notice delivered firm storage service, available in the Market Delivery zone. Firm withdrawal and injection rights are seasonally driven and vary throughout the year. Additional rights may be made available on an interruptible or firm basis as operationally feasible. To protect winter deliverability, the DSS Customer must meet seasonal withdrawal shaping patterns and must cycle 50% of its MSV (Maximum Storage Volume). Storage balances are divided by leg with 50% available on the Amarillo system and up to 60% available on the Gulf Coast system. The DSS Customer must have at least 95% of its MSV in storage at some time between October 15th and November 15th to maintain full withdrawal rights in the ensuing withdrawal season. The imbedded firm transportation component of DSS is available for use separately from the storage component from October 15th through April 15th. The DSS Customer must separately arrange with Natural and/or others as necessary for any transportation for the delivery of gas to storage for injection. The DSS Customer may release the storage component or the transportation component separately.

(FRSS) Firm Reverse Storage Service Rate Schedule FRSS can be contracted for as a firm reverse delivered no-notice summertime peaking service or as a firm reverse storage-only service up to the Maximum Daily Quantity and Maximum Seasonal Withdrawal Quantity utilizing Natural’s storage cushion gas. FRSS customers replace gas withdrawn during the summer [withdrawal period: May 15th – September 30th], back to storage between December 1st and the end of February [injection period]. FRSS can have a Maximum Storage Volume equal to either 10 or 20 times the contract MDQ. There are no withdrawal rights during the injection season and there are no injection rights during the withdrawal season. Gas must be injected into the same receipt zone storage pool as the delivery point, unless mutually agreed otherwise. Shippers must separately arrange for transportation to effectuate injections. An FRSS Shipper may release the storage component or the transportation component separately. For shippers electing the storage only option of the service, shipper may separately request firm no-notice deliveries through a separate designated transportation agreement.

(NSS) Nominated Storage Service Rate Schedule NSS is a very flexible, firm, storage-only service. Firm Injection and Withdrawal rights are based on inventory and do not vary by season. Additional rights may be made available on an interruptible or firm basis as operationally feasible. NSS service must be nominated and transportation must be contracted for separately. NSS may also be combined with FTS-NB or FFTS-NB to obtain no-notice service. The Storage Service is contracted by pipeline leg (Amarillo/Gulf Coast) in any mutually agreeable ratio depending on capacity availability. NSS has no requirements regarding cycling or minimum inventory levels.

(BESS) Best Efforts Storage Service Rate Schedule BESS provides an interruptible storage service that is available in all zones. As the name implies, this storage service is provided on a "best efforts" basis.

(IBS) Interruptible Balancing Services Rate Schedule IBS defines an interruptible imbalance management service for specified end-use facilities. Natural provides this service through its line pack capability. An IBS Shipper must have and maintain in effect an FTS, FFTS or ITS agreement to which the IBS agreement is linked. IBS service is designed to help a Shipper accommodate differences between nominations and physical gas flows to specified end-use facilities under the FTS, FFTS or ITS agreement to which the IBS agreement is linked. IBS allows customers to swing their daily loads either up and/or down, within the levels of the confirmed IBS swings without incurring Balancing Service Charges.

(PALS) Park and Loan Service Rate Schedule PALS provides an interruptible service for parking or loaning gas to meet supply/demand requirements, to mitigate imbalances, or to capture arbitrage value. This service is available in all zones and at any mutually agreeable point.
(LPS) Line Pack Service Rate Schedule LPS is an interruptible service for parking and loaning gas that provides shippers another tool for managing its overall supply portfolio of services including taking advantage of pricing differentials. This service allows a Shipper to nominate a quantity of gas to any mutually agreeable receipt or delivery point on Natural’s system, to be held or loaned by Natural for a specified period. A LPS Shipper is required to use the same point to complete a specific transaction, unless another point is agreed upon by Natural and the Shipper. Transportation must be contracted for separately. LPS also provides shippers a mechanism for dealing with daily imbalances through the Standing Request Order (SRO) program under LPS. The availability of LPS is based on Natural's system operating conditions and line pack, without reliance on storage. This service is available in all zones and at any mutually agreeable point other than storage and off-system points.