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Original Sheet No. 508 Original Sheet No. 508 : Superseded

 

PALS SERVICE AGREEMENT

THIS AGREEMENT, made and entered into this _____ day of ___________, 20__, by and between CROSSROADS PIPELINE

COMPANY (“Transporter”) and _______________________________________________ (“Shipper”).

WITNESSETH: That in consideration of the mutual covenants herein contained, the parties hereto agree as

follows:

Section 1. Service to be Rendered. Transporter shall perform and Shipper shall receive service in

accordance with the provisions of the effective PALS Rate Schedule and applicable General Terms and Conditions

of Transporter’s FERC Gas Tariff, First Revised Volume No. 1 (Tariff), on file with the Federal Energy

Regulatory Commission (Commission), as the same may be amended or superseded in accordance with the rules and

regulations of the Commission. Transporter shall park or loan quantities of gas for Shipper as specified in

this Agreement as the same may be amended from time to time by agreement between Shipper and Transporter, or

in accordance with the rules and regulations of the Commission. Service hereunder shall be provided subject

to the provisions of Subpart B or G of Part 284 of the Commission’s regulations.

Section 2. Term. Service under this Agreement shall commence as of ________________ and shall continue in

full force and effect until ____________________. Pre-granted abandonment shall apply upon termination of

this Agreement.

Section 3. Rates. Shipper shall pay the Transporter charges as described in the above referenced Rate

Schedule, unless otherwise agreed to by the parties as follows:

_________________________________________. Transporter may agree to discount its rate to Shipper below

Transporter’s maximum rate, but not less than Transporter’s minimum rate. Such discounted rate may apply to:

a) specified quantities (contract demand or commodity quantities); b) specified quantities above or below a

certain level or all quantities if quantities exceed a certain level; c) quantities during specified time

periods; d) quantities at specified points, locations, or other defined geographical areas; and e) that a

specified discounted rate will apply in a specified relationship to the quantities actually transported (i.e.,

that the reservation charge will be adjusted in a specified relationship to quantities actually transported).

In addition, the discount agreement may include a provision that if one rate component which was at or below

the applicable maximum rate at the time the discount agreement was executed subsequently exceeds the

applicable maximum rate due to a change in Transporter’s maximum rate so that such rate component must be

adjusted downward to equal the new applicable maximum rate, then other rate components may be adjusted upward

to achieve the agreed overall rate, so long as none of the resulting rate components exceed the maximum rate

applicable to that rate component. Such changes to rate components shall be applied prospectively, commencing

with the date a Commission order accepts revised tariff sheets. However, nothing contained herein shall be

construed to alter a refund obligation under applicable law for any period during which rates, which had been

charged under a discount agreement, exceeded rates which ultimately are found to be just and reasonable.