Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

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Effective Date: 07/01/2008, Docket: RP06-200-044, Status: Effective

Third Revised Sheet No. 9H Third Revised Sheet No. 9H

Superseding: Second Revised Sheet No. 9H

 

FOOTNOTES

Applicable to Negotiated Rates

 

11/ [EnCana k552130] The term of this Agreement shall commence on the in-

service date of REX West for firm service (other than Interim Service as

defined below) and shall continue until the earlier of: (i) eleven (11)

years from the date REX West is placed in service to the PEPL point in

Audrain County, Missouri, or ii) the effective date of a superseding REX

East Agreement.

 

This contract is subject to a Steel Price Adjustment, as outlined below

and which shall be added to or subtracted from the Negotiated Reservation

Rate. However, the final adjusted rate will be neither higher than $0.40

monthly equivalent per Dth per month ($12.1667 per Dth per month) nor

lower than $0.10 monthly equivalent per Dth per month ($3.0417 per Dth

per month) for Interim Service and neither higher than $0.50 monthly

equivalent per Dth per month ($15.2083 per Dth per month) nor lower than

$0.20 monthly equivalent per Dth per month ($6.0833 per Dth per month)

for full service.

 

The formula for determining the Steel Price Adjustment shall be:

 

(Steel Cost Realized - $584,016,522 (Gulf Steel Cost Estimate))

$1,000,000 * [monthly equivalent of $0.0002/Dth]

 

Transporter shall determine the actual Steel Price Adjustment no later

than forty-five (45) days following the in-service date of REX West for

firm service other than Interim Service and Transporter shall either:

i) refund to Shipper any amount over-collected, or ii) invoice Shipper

for any under-collection caused by a difference in the estimated and

actual Steel Price Adjustment. The in-service date of the REX West

Facilities for firm service, other than Interim Service, was May 20,

2008. Transporter has determined the actual Steel Price Adjustment shall

be a credit to Shipper in the amount of $0.2347 per Dth per month.

 

In the event Transporter is able to place REX West Facilities in service

on a firm basis, before firm service is available to PEPL-Audrain, but

with interconnections at PINs 42499, 43037 and 43038 ("Interim Service"),

Shipper shall have the option of commencing service and shall provide

Transporter with thirty (30) days written notice of its election to

commence service early and Shipper shall pay an Interim Negotiated

Reservation Rate of $12.0635 per Dth per month, adjusted to reflect the

Steel Price Adjustment plus other applicable charges and surcharges in

accordance with Transporter's Tariff.

 

In the event Transporter is unable to provide Interim Service to Shipper

in an aggregate quantity equal to Shipper's Contract MDQ, then for any

such period of time as Transporter is unable to provide such level of

Interim Service, Shipper shall pay the Interim Negotiated Reservation

Rate applied to the aggregate quantity of firm service, up to Shipper's

Contract MDQ, that Transporter is able to provide to Shipper.