American Midstream (AlaTenn), LLC

Fifth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-493-000, Status: Effective

Original Sheet No. 117 Original Sheet No. 117

 

GENERAL TERMS AND CONDITIONS (continued)

 

(o) Discounting Policy: (i) 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 Contracts and will apply without the discount

constituting a

material

deviation from Transporter's applicable pro forma Service Contracts; 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:

 

(a) to specified quantities under Shipper's Service Contract(s);

(b) to specified quantities above or below a certain level or all quantities if

quantities exceed

a

certain level;

(c) in a specified relationship to quantities actually transported (i.e., that the

Reservation Rate

will be

adjusted in a specified relationship to quantities actually transported);

(d) to specified quantities during specified periods of time or during specified

periods of the

Year;

(e) to specified quantities at specific Receipt Point(s) or Delivery Point(s) or

other

geographical

locations;

(f) to production reserves committed or dedicated by Shipper; and/or

(g) 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

Rate