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
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.
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
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