Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 156 Original Sheet No. 156 : Effective

GENERAL TERMS AND CONDITIONS

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12.6 DISCOUNTING POLICY FOR RATES AND CHARGES

Horizon reserves the right to provide, by contract

with any Shipper, for adjustment at any time of the rates for

service to a level below the maximum rates applicable to such

service, as stated in this Tariff, but no less than the minimum

rates as applicable to such service, as stated in this Tariff. To

the extent Horizon agrees to a discount of any reservation rates

and reservation surcharges for firm transportation service, the

discount will be apportioned first to the base reservation rate,

and second, if the discount is greater than such base reservation

rate, to any applicable reservation surcharge. To the extent

Horizon agrees to discount any commodity rates and commodity

surcharges for firm transportation service, the discount will be

apportioned first to the base commodity rate, and second, if the

discount is greater than such base commodity rate, to the

commodity surcharge. To the extent Horizon agrees to a discount of

any commodity rates and commodity surcharges for interruptible

transportation service, the discount will be apportioned first to

the base commodity rate, and second, if the discount is greater

than such base commodity rate, to any applicable commodity

surcharge. Nothing herein will require Horizon to agree to any

discount.