B-R Pipeline Company

Original Volume No. 1

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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 85 Original Sheet No. 85 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

18. NEGOTIATED RATES

18.1 Availability. Notwithstanding anything to the contrary contained

in this Tariff, Transporter and Shipper may mutually agree to negotiate

rates and contract term for all or any portion of the capacity under any

Part 284 service agreement, provided that Shipper has not acquired its

capacity under the capacity release provisions of Section 20. If only a

portion of the capacity under any service agreement will be priced at

Negotiated Rates, the original service agreement must first be

bifurcated, and Recourse Rates will continue to apply to the service

agreement not subject to the Negotiated Rates. Any Shipper may receive

service at applicable Recourse Rates.

18.2 Bids/Requests for Service. Transporter will not accept Negotiated

Rate bids or Negotiated Rate requests for any available capacity.

However, Transporter and any Shipper with a Part 284 service agreement,

except a Shipper using capacity acquired under a capacity release

arrangement, may mutually agree to convert that service agreement to one

subject to Negotiated Rates.

18.3 Filing Requirement. Transporter will submit to the Commission a

tariff sheet stating the name of the Shipper, the Negotiated Rate, the

rate schedule, the receipt and delivery points, and the contract

quantities applicable to any Negotiated Rate service agreement. Unless

Transporter executes and files a non-conforming service agreement, such

tariff sheet will contain a statement that the Negotiated Rate service

agreement does not deviate in any material aspect from the form of

service agreement in the tariff for the applicable rate schedule.

18.4 Rate Treatment. Transporter will not seek in future general rate

proceedings discount-type adjustments to demand charge billing

determinants for capacity converted from Recourse Rate service agreements

to Negotiated Rate service agreements, unless the Recourse Rate had been

discounted. In those situations where Transporter had granted a

market-justified discount to the Recourse Rate and subsequently converted

the service agreement to a Negotiated Rate service agreement, Transporter

may seek a discount-type adjustment. Such adjustment would be based on

the greater of: (i) the Negotiated Rate revenues received or (ii) the

discounted Recourse Rate revenues which otherwise would have been received.

18.5 Limitations. This section 18 does not authorize Transporter to

negotiate terms and conditions of service.