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

Second Revised Sheet No. 9J Second Revised Sheet No. 9J

Superseding: First Revised Sheet No. 9J

 

FOOTNOTES

Applicable to Negotiated Rates

 

13/ [Sempra k552038] The term of this Agreement shall commence on the in-

service date of REX West for firm service (including Interim Service as

defined below) and shall continue until the earlier of: i) the date ten

(10) 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 $0.824 monthly

equivalent per Dth per month, nor lower than $0.724 monthly equivalent.

 

The formula for determining the Steel Price Adjustment shall be:

(actual realized steel cost per ton in the construction of REX West -

$1,275 per ton) * (actual tons of steel) / $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 an 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 in the amount

of $0.0728 per Dth per month.

 

In the event Transporter places 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 pay an Interim Negotiated Reservation Rate of $20.5008 per Dth per

month, adjusted for the Steel Price Adjustment, until service on a firm

basis to PEPL-Audrain is available and Transporter is capable of delivering

Shipper's Contract MDQ to Shipper's Primary Delivery Points.

 

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.

 

During Interim Service Shipper's quantities have been designated for

receipt and delivery at the following points:

 

Primary Receipt Points MDRQ

ENC Gath/REX Meeker Rio Blanco (PIN 42234) 83,710

WFSC/REX Opal Lincoln (PIN 43462) 83,709

 

Primary Delivery Points MDDQ

NGPL/REX Jefferson County Delivery (PIN 42499) 78,682

NNG/REX Gage County (PIN 43037) 5,830

ANR/REX Brown County (PIN 43038) 82,907

 

If Interim Service continues for a period greater than twelve consecutive

months, then Shipper's Interim Negotiated Reservation Rate shall be

prospectively reduced to $11.7713 per Dth per month, adjusted for the Steel

Price Adjustment, applied to the aggregate quantity of firm service up to

Shipper's Contract MDQ, that Transporter is able to provide to Shipper from

the beginning of the thirteenth month until full service to PEPL-Audrain is

available.