Clear Creek Storage Company, LLC

Original Volume No. 1

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Effective Date: 06/01/2000, Docket: CP98-256-002, Status: Effective

Original Sheet No. 68 Original Sheet No. 68 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

section shall not apply in the case of deliberate omission

or misrepresentation or mutual mistake or fact. Parties'

other statutory or contractual rights shall not be

diminished by this standard.

 

15. Facilities

 

Unless otherwise agreed to by the parties, Clear Creek

shall not be required to own, construct and install any

facilities to perform the service requested by Customer. If

Clear Creek agrees to own, construct and install facilities

to perform the service requested by Customer, Customer shall

reimburse Clear Creek for all costs associated therewith

either on a lump sum or incremental fee basis, as agreed to

by the parties.

 

Customer's payment to Clear Creek shall include the

full cost of the facility, the tax burden created by the

payment, as well as the tax-on-tax effect generated by the

payment. Reimbursement for federal income taxes on

Customer's payment will be computed by first determining the

tax-on-tax effect, and then deducting the economic value of

the future tax benefit provided by the future depreciation

of plant involved in the payment.

 

The tax-on-tax effect will be determined by the product

of (a) the dollar amount qualifying as a contribution in aid

of construction under the Tax Reform Act of 1986 and (b) the

"tax rate" divided by 1 minus the tax rate as demonstrated

below:

 

Tax Rate

1-Tax Rate

 

The economic value of the tax benefit provided by the

future depreciation of plant shall be calculated by Clear

Creek according to the economic value formula set out in

Section 3 of these General Terms and Conditions. Customer

shall have no ownership interest in the additional

facilities installed by Clear Creek.

 

16. Cushion Gas

 

Clear Creek shall, as it determines necessary, make

periodic adjustments to its storage Cushion Gas inventory to

support the levels of Storage Service for itself and other

Customers.