Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 10/01/2000, Docket: RP00-500-000, Status: Effective

Third Revised Sheet No. 70 Third Revised Sheet No. 70 : Effective

Superseding: Second Revised Sheet No. 70

GENERAL TERMS

AND CONDITIONS

24.0 NEGOTIATED & DISCOUNTED RATES

24.1 Negotiated Rate Availability

Chandeleur and Shipper may agree to Negotiated

Rates, as defined in Section 2 of the General Terms

and Conditions of this Tariff, for a specific term

of service under any rate schedule contained in this

tariff. The rates as shown by Chandeleur on its

Statement of Rates tariff sheet(s) are available as

Recourse Rates for any Shipper that does not

negotiate a rate with Chandeleur.

24.2 Negotiated Rate Applicability

(a) Existing Service. Notwithstanding anything to

the contrary contained in this Tariff,

Chandeleur and Shipper may mutually agree to

negotiate rates and contract term for all or

any portion of the capacity under any existing

service agreement, provided that Shipper has

not acquired its capacity through a capacity

release. If only a portion of the capacity

under any existing 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.

(b) New Service Requested by Shipper. Chandeleur and Shipper

may mutually agree to Negotiated rates and contract term for any

available capacity that is requested by Shipper.

(c) Bids on Posted Capacity. If available capacity is posted

for bid and Chandeleur has determined that it is willing to

consider bids at Negotiated Rates, Chandeleur must specify in its

posting that it will consider Negotiated Rate bids in addition to

Recourse Rate and discounted Recourse Rate bids.