Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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Effective Date: 12/01/2007, Docket: RP08- 34-000, Status: Effective

Original Sheet No. 304 Original Sheet No. 304 : Effective

 

 

EXHIBIT A (Cont'd.)

DATED ............

 

Rates

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Except as otherwise provided below or in any written agreement(s)

between the parties in effect during the term hereof, Shipper shall

pay KMIP the applicable maximum rate(s) and all other lawful charges

as specified in KMIP's applicable rate schedule. Shipper and KMIP may

agree that Shipper shall pay a rate other than the applicable maximum

rate so long as such rate is between the applicable maximum and

minimum rates specified for such service in the Tariff. KMIP and

Shipper may agree that a specific discounted rate will apply only to

certain volumes under the agreement. The parties may agree that a

specified discounted rate will apply only to specified volumes (MDQ

or commodity volumes) under the agreement; that a specified

discounted rate will apply only if specified volumes are achieved or

only if the volumes do not exceed a specified level; that a specified

discounted rate will apply only during specified periods of the Year

or for a specifically defined period; that a specified discounted

rate will apply only to specified points, zones, mainline segments,

supply areas, transportation paths, markets or other defined

geographical area(s); that a specified discounted rate(s) will apply

in a specified relationship to the volumes actually transported;

(i.e., that the reservation charge will be adjusted in a specified

relationship to volumes actually transported); and/or that a specific

discount rate shall apply only to reserves dedicated by Shippers to

KMIP's system. Notwithstanding the foregoing, no discount agreement

may provide that an agreed discount as to a certain volume level will

be invalidated if the Shipper transports an incremental volume above

that agreed level. In addition, the discount agreement may include a

provision that if one rate component which was at or below the

applicable maximum rate at the time the discount agreement was

executed subsequently exceeds the applicable maximum rate due to a

change in KMIP's maximum rates so that such rate component must be

adjusted downward to equal the new applicable maximum rate, then

other rate components may be adjusted upward to achieve the agreed

overall rate, so long as none of the resulting rate components exceed

the maximum rate applicable to that rate component. Such changes to

rate components shall be applied prospectively, commencing with the

date a Commission order accepts revised tariff sheets. However,

nothing contained herein shall be construed to alter a refund

obligation under applicable law for any period during which rates

which had been charged under a discount agreement exceeded rates

which ultimately are found to be just and reasonable. If the parties