Chandeleur Pipe Line Company

Second Revised Volume No. 1

Effective Date: 08/01/2002, Docket: RP00-320-002, Status: Effective

Second Revised Sheet No. 72 Second Revised Sheet No. 72 : Effective

Superseding: Original Sheet No. 72

GENERAL TERMS

AND CONDITIONS

24.0 NEGOTIATED & DISCOUNTED RATES (Cont'd)

24.2 Negotiated Rate Applicability (Cont'd)

(3) The value of a Negotiated Rate bid will be capped

at the value of a Recourse Rate bid under

comparable terms.

(4) If more than one bid has the same value, capacity

will be awarded to the bid with the highest rate.

24.3 Negotiated Rate Filing Requirement

Chandeleur 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, the

contract quantities and the term applicable to any

Negotiated Rate service agreement. Unless Chandeleur

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. Other

than the rate referenced in Section 3.0 "Rate Schedule

and Price".

24.4 Limitations

This Section 24 does not authorize Chandeleur to

negotiate terms and conditions of service.

24.5 Discounted Rates

Chandeleur may at any time, and in its sole discretion,

selectively discount the rate(s) applicable to any

Shipper the FT and IT Rate Schedules set forth in this

Tariff. Discounts will be applied only to the

Reservation Rates for FT service, and to the Usage Rate

for IT service. Such discounted rate (s) shall not be

less than the minimum rate(s) for the applicable

service as set forth in the currently effective

Statement of Rates of this Tariff.