Chandeleur Pipe Line Company

Second Revised Volume No. 1

Effective Date: 08/01/2002, Docket: RP00-320-001, Status: Effective

Original Sheet No. 72A Original Sheet No. 72A : Effective

GENERAL TERMS

AND CONDITIONS

24.0 NEGOTIATED & DISCOUNTED RATES (Cont'd)

24.5 Discounted Rates (Cont'd)

Chandeleur may agree to apply the following types or

combinations of discounts:

a) specified quantities;

b) specified quantities above or below a certain level

or all quantities if quantities exceed a certain

level;

c) quantities during a specified time period;

d) quantities at or between specified points, or other

geographically defined areas; or

e) other, as offered equitably to similarly situated

Shippers.

24.6 Discount Retention Policy

A Shipper granted a discounted rate with Chandeleur

which is limited to service to a specific receipt and

delivery point can request that it be permitted to

retain that discount rate when seeking to use Alternate

Receipt and / or Delivery Points as part of the

Shipper's segmentation, capacity release, or flexible

receipt and delivery point rights under this Tariff. A

discount rate will not be retained by Shipper if

Chandeleur can demonstrate that it has not granted a

discount with respect to a similarly situated shipper

at the point(s). If no discount has been granted to a

similarly situated shipper at the point(s), Shipper

requesting the discount retention will be subject to

the Maximum Rate as set forth in the currently

effective Statement of Rates at the requested point(s).

If the discount is to be retained by Shipper, Shipper

will pay the higher of its contractual rate or the

discount rate applicable to the similarly situated

Shipper at the point(s).