Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 11/01/2005, Docket: RP05-668-001, Status: Effective

Substitute First Revised Sheet No. 300 Substitute First Revised Sheet No. 300 : Effective

Superseding: Original Sheet No. 300

GENERAL TERMS AND CONDITIONS

30. Types and Portability of Discounts

 

30.1 Types of Discounts

Various rate schedules permit Southern Star to discount its rates

between its maximum and minimum rates on a basis that is not

unduly discriminatory. From time to time Shipper and Southern

Star may agree in writing on a level of discount of the otherwise

applicable rates and charges in addition to a basic discount from

the stated maximum rates. For example, Southern Star may provide

a specific discounted rate:

 

(i) to certain specified quantities under the Service

Agreement,

(ii) if specified quantity levels are actually achieved or with

respect to quantities below a specified level,

(iii) to production reserves committed by the Shipper,

(iv) during specified time periods,

(v) to points of receipt, points of delivery, supply areas, or

defined geographical areas,

(vi) in a specified relationship to the quantities actually

transported (i.e., that the rates shall be adjusted in a

specified relationship to quantities actually transported),

(vii) based on a formula including, but not limited to, published

index prices for specific receipt or delivery points or

other agreed-upon pricing reference points for price

determination, provided that, any such discount will

produce a rate per unit of contract demand

(viii)that provides for increasing (or decreasing) a discounted

rate for service under one rate schedule to make up for a

decrease (or increase) in the maximum rate for a separate

service provided under another rate schedule, and any such

discount shall specify the rate component to be discounted,

or

(ix) to production reserves, supplies or markets committed by

shipper.

 

In all circumstances the discount provided shall not change the

underlying rate design, and the resulting discounted rate shall

be between the maximum rate and the minimum rate applicable to

the service provided.

 

Such forms of discounts shall not be considered a material

deviation from Southern Star's pro forma service agreement as a

result of such discount and Southern Star shall not be required

to file such agreement with the Commission as a non-conforming

contract because of such discount. Southern Star shall, however,

file any required reports related to such discounts pursuant to

the Commission's regulations.