American Midstream (Midla), LLC

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-483-000, Status: Effective

Original Sheet No. 188 Original Sheet No. 188

 

28. DISCOUNT POLICY

(a) In the event that Pipeline agrees to discount its rate to Customer below Pipeline?s

maximum rate under Pipeline?s Rate Schedules, the following discount terms may be

reflected on the applicable Service Agreements and will apply without the discount

constituting a material deviation from Pipeline?s applicable pro forma Service

Agreements; provided, however, that any such discounted rates set forth below shall be

between the minimum and maximum rates applicable to the service provided under the

applicable Rate Schedule. Pipeline and Customer may agree that a specified discounted

rate will apply under the following conditions:

 

(i) to specified quantities under Customer?s Service

Agreement(s);

(ii) to specified quantities above or below a certain level or all quantities if quantities

exceed a certain level;

(iii) in a specified relationship to quantities actually transported (i.e., that the

Reservation charge will be adjusted in a specified relationship to quantities actually

transported);

(iv) to specified quantities during specified periods of time or during specified periods

of the year;

(v) to specified quantities at specific Point(s) of Receipt or Point(s) of Delivery or

other geographical locations;

(vi) to production reserves committed or dedicated by Customer; and/or

(vii) that a specific discounted rate is based on published index prices for specific

Point(s) of Receipt and/or Point(s) of Delivery or other agreed-upon published pricing

reference points (such discounted rate may be based upon the differential between

published prices or arrived at by formula). Any agreement containing such discounted

rate shall specify the rate component(s) to be discounted (i.e., Reservation charge or

Commodity charge or both), and any formula will provide a reservation rate per unit of

contract demand (Maximum Daily Quantity). To the extent the firm Reservation charge

is discounted, the index price differential rate formula shall be calculated to state a rate

per Dth. Furthermore, such discount shall not change the underlying rate design of the

service being provided or include any minimum bill or maximum take provision that

would have the effect of guaranteeing revenue.

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 or is less than the

applicable minimum rate due to a change in Pipeline?s maximum (minimum) rates so

that such rate component must be adjusted downward (upward) to equal the new

applicable maximum (minimum) rate, the other rate components may be adjusted

upward (downward) to achieve the agreed overall rate, so long as none of the resulting

rate components exceed the maximum rate or are less than the minimum 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. 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.