Mojave Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Third Revised Sheet No. 220 Third Revised Sheet No. 220

Superseding: Second Revised Sheet No. 220

GENERAL TERMS AND CONDITIONS

(Continued)

4. Requests for Service (Continued)

4.18 Discounting. In the event that Transporter agrees to discount its

rate to Shipper below Transporter's maximum rate under any of

Transporter's rate schedules, the following discount terms may be

reflected in the applicable Service Agreement(s), or separate

discount agreement(s), and will apply without the discount

constituting a material deviation from Transporter's Form of Service

Agreement; 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.

(a) Transporter and Shipper may agree that a specified discounted

rate will apply under the following conditions:

(i) to specified quantities under the agreement or related

scheduled overrun transportation;

(ii) to specified quantities achieving or not exceeding a certain

level;

(iii) 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 receipt or delivery

points or other geographical locations;

(vi) that provides for increasing (decreasing) a discounted rate

for service under one rate schedule to make up for a

decrease (increase) in the maximum rate for service under a

separate rate schedule, and any such discount shall specify

the rate component to be discounted;

(vii) to production reserves committed by the Shipper; and/or

(viii)that a specified discounted rate is based on a formula

including, but not limited to, published index prices for

specific receipt and/or delivery points 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 usage charge or

both) and any formula will provide a reservation rate per

unit of contract demand. To the extent the firm reservation

charge is discounted, the index price differential rate

formula shall be calculated to state a rate per Maximum

Daily Quantity. Furthermore, such discount shall not change

the underlying rate design of the service being provided or

include any minimum bill or minimum take provision that

would have the effect of guaranteeing revenue;