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. 122 Original Sheet No. 122 : Effective

 

RATE SCHEDULE IT

Interruptible Transportation Service

(Continued)

 

3. TRANSPORTATION SERVICE CHARGES (Contd.)

 

3.1 Applicable Rates. (Contd.)

 

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

minor facilities is required in order to provide service to

Shipper, Shipper will pay Transporter a one-time 100 percent

reimbursement for the cost of facilities. The facility charge

will include the cost of the facilities, plus 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)}]

 

(d) Other Charges: Shipper shall pay to Transporter when incurred

by Transporter all charges related to service provided under

this Rate Schedule, including any costs incurred by

Transporter on behalf of Shipper.

 

3.2 Adjustment of Rates.

 

(a) Subject to the terms of the TSA, Transporter reserves the

right to prescribe and/or adjust at any time any of the rates

applicable to service under any individual TSA without

adjusting any other rates for service under other TSAs.

Downward adjustment to any rate shall be for a specific term.

Unless otherwise agreed, at the expiration of the term

specified in the TSA, the rate for transportation service

shall revert to the maximum rate under this Rate Schedule.