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

Original Volume No. 1

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Effective Date: 01/22/2005, Docket: RP05-136-001, Status: Effective

Substitute Original Sheet No. 347 Substitute Original Sheet No. 347 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

31. DISCOUNTING

 

31.1 In the event that Transporter agrees to discount its rate to Shipper

below Transporter's maximum rate under Transporter's FT, IT and SS

Rate Schedules, the following discount terms may be reflected on the

applicable service agreements and will apply without the discount

constituting a material deviation from Transporter's Form of Service

Agreement; provided, however, that any such discounted rates set

forth below shall be between the minimum and maximum rates

applicable to the service provided under the applicable rate

schedule. Transporter and Shipper may agree that a specified

discounted rate will apply under the following conditions:

 

(a) to specified quantities under the TSA or related scheduled

overrun transportation;

(b) to specified quantities achieving or not exceeding a certain

level;

(c) in a specified relationship to quantities actually

transported;

(d) to specified quantities during specified periods of time or

during specified periods of the year;

(e) to specified quantities at specific receipt or delivery

points or other geographical locations;

(f) to production reserves committed by the Shipper; and/or

(g) that a specific discounted rate is based on published index

prices for specific receipt and/or delivery points or other

agreed-upon published pricing reference points (such

discounted rate may be based upon the differential between

published prices or arrived at by formula). Any agreement

containing such discounted rate shall specify the rate

component(s) to be discounted (i.e., reservation charge or

usage charge or both) and any formula will provide a

reservation rate per unit of contract demand (Maximum Daily

Quantity). To the extent the firm reservation charge is

discounted, the index price differential rate formula shall

be calculated to state a rate per dth. Furthermore, such

discount shall not change the underlying rate design of the

service being provided or include any minimum bill or minimum

take provision that would have the effect of guaranteeing

revenue.