Garden Banks Gas Pipeline, LLC

Original Volume No. 1

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Effective Date: 05/10/2005, Docket: RP05-336-000, Status: Effective

First Revised Sheet No. 134 First Revised Sheet No. 134 : Effective

Superseding: Original Sheet No.134

GENERAL TERMS AND CONDITIONS

30. DISCOUNTING POLICY

(a) In the event that Transporter agrees to discount its

rate to Shipper below Transporter's maximum rate under

Transporter's Rate Schedules, the following discount

terms may be reflected on the applicable Service

Agreements and will apply without the discount

constituting a material deviation from Transporter's

applicable pro forma Service Agreements; provided,

however, that any such discounted rates set forth below

shall be between the minimum and maximum rates

applicable to the service provided under the applicable

Rate Schedule. Transporter and Shipper may agree that

a specified discounted rate will apply under the

following conditions:

(i) to specified quantities under Shipper's Service

Agreement(s);

(ii) to specified quantities above or below a certain

level or all quantities if quantities exceed a

certain level;

(iii) in a specified relationship to quantities

actually transported (i.e., that the Reservation

charge will be adjusted in a specified

relationship to quantities actually transported);

(iv) to specified quantities during specified periods

of time or during specified periods of the year;

(v) to specified quantities at specific Receipt

Point(s) or Delivery Point(s);

(vi) to production reserves committed or dedicated by

Shipper; and/or

(vii) that a specific discounted rate is based on

published index prices for specific Receipt

Point(s) and/or Delivery Point(s) or other agreed-

upon published pricing reference points (such

discounted rate may be based upon the differential

between published prices or arrived at by

formula). Any agreement containing such

discounted rate shall specify the rate

component(s) to be discounted (i.e., Reservation

charge or Commodity charge or both), and any

formula will provide a reservation rate per unit

of contract demand (Maximum Daily Quantity). To

the extent the firm Reservation charge is

discounted, the index price differential rate

formula shall be calculated to state a rate per

Dth. Furthermore, such discount shall not change

the underlying rate design of the service being

provided or include any minimum bill or maximum

take provision that would have the effect of

guaranteeing revenue.