Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 427 Original Sheet No. 427 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

47. NEGOTIATED RATES.

 

47.1 Availability. Transporter and Shipper may mutually agree to a Negotiated Rate for service under any

Rate Schedule, provided Shipper has not acquired its capacity as a temporary capacity release under Section

14 (Release and Assignment of Service Rights) of the General Terms and Conditions.

 

47.2 Recourse Rate Availability. The Recourse Rate shall be available to any Shipper that does not wish

to mutually agree to a Negotiated Rate.

 

47.3 Limitations. This Section 47 does not authorize the negotiation of terms and conditions of service.

 

47.4 Allocations/Interruptions Based on Price. Under any circumstances where the allocation or

interruption of capacity is determined by the rate being paid (including pursuant to Sections 7 (Capacity

Allocation) and 16 (Interruptions of Service) of the General Terms and Conditions), Shippers paying more

than the Recourse Rate will be considered to be paying the Recourse Rate.

 

47.5 Capacity Release. With the exception of short-term (less than one year) capacity release

transactions under Order No. 637 that occur during the period March 27, 2000 until September 30, 2002, the

maximum price cap for the release of capacity under a Negotiated Rate agreement shall be the Recourse Rate.

Transporter and a Releasor under Section 14 (Release and Assignment of Service Rights) of the General Terms

and Conditions may, in connection with their agreement to a Negotiated Rate, agree upon payment obligations

and crediting mechanisms in the event of a capacity release that vary from or are in addition to those set

forth in General Terms and Conditions Section 14.8.

 

47.6 Right of First Refusal. The right of first refusal provided with respect to certain Shipper's firm

Service Agreements, as described in Section 4 (Auctions of Available Firm Service) of the General Terms and

Conditions, shall not apply to firm service agreements with Negotiated Rates.

 

47.7 Assessing Negotiated Rate Bids for Available Firm Capacity. For purposes of assessing bids for

available firm capacity pursuant to General Terms and Conditions Section 4, the net Present Value of

Negotiated Rate bids containing a reservation rate or other form of revenue guarantee which exceeds the

applicable Recourse Rate during all or any portion of the term contained in the bid, shall not exceed the

net Present Value that is calculated assuming that the applicable Recourse Rate is in effect during the full

term contained in the bid, in place of the reservation rate or other revenue guarantee contained in the bid.

 

47.8 Rate Treatment. Transporter shall have the right to seek in future general rate proceedings

discount-type adjustments in the design of its rates related to Negotiated Rate agreements that were

converted from pre-existing discount agreements to Negotiated Rate agreements, provided that the type of

pre-existing service is not altered as a result of the conversion to a Negotiated Rate. In those

situations, Transporter may seek a discount-type adjustment based upon the greater of: (a) the Negotiated

Rate revenues received or (b) the discounted rate revenues which otherwise would have been received.