Millennium Pipeline Company, L. L. C.

Original Volume No. 1

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Effective Date: 12/22/2008, Docket: CP98-150-011, Status: Effective

Original Sheet No. 240 Original Sheet No. 240

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

20. DISCOUNT POLICY.

 

 

20.1 Order of Discounts. The first item discounted will be the base rate

reservation charge and then the ACA surcharge.

 

20.2 Types of Discounts. 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, at specified locations, for specified transportation paths, or at

other defined geographical areas; and e) committed production or reserves.

Transporter may also agree 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.