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

Original Volume No. 1

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Effective Date: 07/26/2010, Docket: RP10-876-000, Status: Effective

First Revised Sheet No. 297 First Revised Sheet No. 297

Superseding: Original Sheet No. 297

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

16. RESERVATION CHARGE CREDIT

16.1 Reservation Charge Credit

 

(f) The reservation charge specified in the TSA, and any related

surcharge, will be reduced for any service failures on each

Day during the period described in Sections 16(a) and

16(b)(iii) by an amount equal to the product of (1) the

quantity of gas up to the Shipper's MDQ not scheduled by

Transporter times(2) the rate per Dth equal to the quotient of

the reservation rate in the TSA divided by the number of

applicable Days, rounded to the nearest tenth of a cent times

40% of the maximum recourse rate (representing Transporter's

equity return and associated taxes). Reservation charge

credits under discounted or negotiated rate TSAs shall be

applicable only to that portion of the rate that exceeds 60%

(the amounts other than equity return and associated tax

portion) of the maximum recourse rate. This percentage will

be re-determined whenever the maximum recourse rate changes.

 

(g) Any adjustment shall be credited against transportation

charges for a future Month or refunded if the TSA has

terminated. In no event shall such credit be provided to

Shippers later than 90 Days after the Month in which the

credit was earned. Such crediting shall be Shipper's sole and

exclusive remedy for Transporter's failure as described herein

unless damages incurred by Shipper are shown to be the result

of gross negligence or willful misconduct by Transporter. If

a court makes such a finding, then Transporter shall only be

liable for its proportionate amount of negligence.

 

(h) No adjustments shall be required if Transporter's failure to

schedule gas is due to Shipper's failure to perform in

accordance with the terms of the TSA and the Tariff,

including, but not limited to, Critical Condition Orders and

failure of supply, transportation, and/or market upstream of

or downstream from Transporter's pipeline system.