Cheyenne Plains Gas Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 12/01/2004, Docket: CP03-302-004, Status: Effective

Original Sheet No. 102 Original Sheet No. 102 : Effective

 

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

 

3. TRANSPORTATION SERVICE CHARGES (Contd.)

 

3.1 Applicable Rates (Continued)

 

(c) Backhaul Charge. Shipper shall be charged applicable forward

haul rates when the transportation service rendered by

Transporter is Backhaul.

 

(d) Incremental Facility Charge. When the construction of new

minor facilities is required in order to provide service to

Shipper, Shipper will pay Transporter for such facilities.

The Parties shall agree as to whether Shipper shall (1) make

a one-time 100 percent reimbursement for the cost of

facilities or (2) pay the cost of facilities over a period of

time agreed to by Shipper and Transporter. The facility

charge will include the cost of the facilities plus any

related taxes, plus interest as agreed to by the Parties, if

the Shipper elects to reimburse Transporter for the

facilities over a period of time. If a contribution in aid

of construction (CIAC) is paid by the Shipper in accordance

with the construction of facilities agreement and such

transaction is determined to be taxable, it shall be

increased by an amount (Tax Reimbursement) to compensate for

the corporate income tax effects thereof, according to the

following formula:

 

Tax Reimbursement = [Tax Rate x (CIAC - Present Value of Tax

Depreciation)] x [1 + {Tax Rate/(1 - Tax Rate)}]

 

(e) Other Charges. Transporter shall charge Shipper and Shipper

shall pay for any other FERC approved charges that apply to

service under this Rate Schedule.