Energy West Development, Inc.

Original Volume No. 1

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Effective Date: 06/11/2010, Docket: RP10-732-000, Status: Effective

Second Revised Sheet No. 72 Second Revised Sheet No. 72

Superseding: First Revised Sheet No. 72

 

General Terms and Conditions

 

31. DISCOUNTED RATES

 

From time to time Shipper and Transporter 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, Transporter may provide a specific discounted rate:

 

(1) to certain specified quantities under the Transportation Service Agreement;

 

(2) if specified quantity levels are actually achieved or with respect to quantities

below a specified level;

 

(3) to production reserves committed by the Shipper;

 

(4) during specified time periods;

 

(5) to specified points of receipt, points of delivery, supply areas, Transportation

paths or defined geographical areas; or

 

(6) 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).

 

In all circumstances, the discounted rate shall be between the maximum rate and the

minimum rate applicable to the service provided.

 

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 Rates 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, as long as

none of the resulting rate components exceeds 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 rates.

However, nothing contained herein shall be construed to alter a refund obligation

under applicable law for any period during which rates that had been charged under

a discount agreement exceeded rates, which ultimately are found to be just and

reasonable.

 

32. OFF-SYSTEM CAPACITY

 

From time to time, Transporter may enter into Transportation and/or storage agreements

with other interstate and intrastate pipeline and storage providers ("off-system

capacity"). In the event that Transporter acquires off-system capacity, Transporter will

use such capacity for operational reasons or to render service for its Shippers. In the

event that Transporter uses off-system capacity to render service for its Shippers, it

will only render service to Shippers on the acquired capacity pursuant to this Tariff and

subject to Transporter's approved rates, as such tariff and rates may change from time to

time. For purposes of transactions entered into subject to this Section, the "Shipper must

have title" requirement is waived.