Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

Effective Date: 05/21/2002, Docket: CP00- 6-004, Status: Effective

Original Sheet No. 207 Original Sheet No. 207 : Effective

GENERAL TERMS AND CONDITIONS

(CONTINUED)

36. DISCOUNT POLICY

Transporter may, but is not obligated to, offer service at rates

less than the maximum Recourse Rates, but Transporter may agree

to provide service to Shipper at a specified discount, in which

case such discount shall not be provided at a rate lower than the

variable costs included in Transporter's currently effective

usage rate. For example, Transporter and Shipper may agree that

a specified discounted rate will apply: (a) only to certain

specified firm service entitlements; (b) only if specified

quantity levels are actually achieved (with higher rates,

charges, and fees applicable to all quantities above those

levels, or to all quantities if the specified levels are not

achieved); (c) only during specified time periods; or (d) only to

specified Receipt Points, Delivery Points, Transportation paths,

or defined geographical areas; provided, however; that any such

discounted rates set forth above shall be between the minimum and

maximum rates applicable to the Service provided.

If Transporter has agreed to a discount with a Shipper receiving

Transportation Service under an Agreement pursuant to Part 284 of

the Commission's Regulations and the discount is limited to

specific Point(s) of Receipt or Delivery or both, the Shipper may

request that such discount apply to Transportation Service under

said Agreement at a different Point of Receipt or Delivery

accessible under said Agreement at which Transporter and the

Shipper have not specifically agreed to the discounted rate.

There is a rebuttable presumption that such discount shall apply

at the requested point if Transporter at the time of the request

is granting discounts to other similarly situated Shipper(s)

receiving Transportation Service utilizing that point. However,

Transporter can rebut this presumption by demonstrating that the

proposed service to the Shipper is not similarly situated to the

service receiving a discount at the requested point. Regardless

of the discount granted by Transporter to any similarly situated

Shipper at such requested point, if pursuant to this paragraph

Shipper is granted a discount for Transportation at the requested

point, Shipper shall pay the higher of its contractual discount

rate or the discount rate provided to another Shipper utilizing

the requested point.