Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 10/12/2009, Docket: RP09-856-002, Status: Pending

Second Substitute Original Sheet No. 304 Second Substitute Original Sheet No. 304

 

EXHIBIT C [Discount Agreement - FTS]

DATED ............

EFFECTIVE ...................

 

Shipper: ...................

Contract No.: ...................

ARTICLE 1

DISCOUNT PARAMETERS

 

1.1 Discount Term: From..........Through..........

 

1.2 Discounted Monthly/Daily Base Reservation Rate: $.......... /Dth. of MDQ.

 

1.3 Discounted Base Commodity Rate: $.......... /Dth.

 

1.4 Discounted Firm Transportation Quantity: .......... Dth./day.

 

1.5 Discounted Primary Receipt Points: [as set forth in Exhibit A, unless otherwise listed herein]

 

DISCOUNTED POINT

NAME PIN MDQ (Dth/d.)

---- --- ----------------

 

1.6 Discounted Secondary Receipt Points: The Discounted Monthly/Daily Base Reservation Rate shall apply

to service provided on a firm basis from the following secondary receipt points: ...................

 

1.7 Discounted Primary Delivery Points: [as set forth in Exhibit B, unless otherwise listed herein]

 

DISCOUNTED POINT

NAME PIN MDQ (Dth/d.)

---- --- ----------------

 

1.8 Discounted Secondary Delivery Points: The Discounted Monthly/Daily Base Reservation Rate shall apply

to service provided on a firm basis to the following secondary delivery points: ....................

 

ARTICLE 2

DISCOUNT TERMS AND CONDITIONS; OTHER CHARGES

 

2.1 General Discount Limitations: The Discounted Monthly/Daily Base Reservation Rate shall apply only to:

(i) service provided to Shipper by Horizon under the Transportation Agreement from the Discounted

Receipt Points to the Discounted Delivery Points during the Discount Term; and (ii) a maximum daily

firm transportation quantity equal to the Discounted Firm Transportation Quantity set forth in

Section 1.4 above, for all quantities transported on a firm basis under the Transportation Agreement

and any associated capacity release replacement agreements. Unless otherwise agreed, Shipper shall

be charged all applicable maximum rates, charges, and surcharges set forth in Horizon's FERC Gas

Tariff, as may be revised from time to time, for any aggregate quantities transported on a firm basis

for Shipper and any associated capacity release replacement shippers which: (i) are in excess of the

Discounted Firm Transportation Quantity, or (ii) involve any receipt or delivery points which are not

Discounted Receipt or Delivery Points.

 

2.2 Discountable Third Party Surcharges: From time to time, certain reservation and/or commodity

surcharges may be approved by the FERC for inclusion in Horizon's FERC Gas Tariff which Horizon is:

(i) required to collect from Shipper and remit to the FERC or to another third party; and (ii)

permitted to discount the amount of such surcharge from the applicable maximum rate set forth in

Horizon's FERC Gas Tariff ("Discountable Third Party Surcharges"). [Describe any applicable

surcharges covered by this Section and whether Horizon agreed to discount such surcharge for

Shipper.]

 

2.3 Applicable Maximum Rates, Charges, and Surcharges: Unless otherwise expressly provided in this

Agreement or agreed to in writing by Horizon, all applicable maximum rates, charges, surcharges, and

penalties of any nature set forth in Horizon's FERC Gas Tariff, as may be revised from time to time,

shall apply to service provided to Shipper under the Transportation Agreement, including without

limitation all applicable: (i) Fuel and Gas Lost and Unaccountable For charges; (ii) authorized and

unauthorized overrun charges; (iii) reservation surcharges; (iv) commodity rates, charges and

surcharges; and (v) ACA surcharges.