Mojave Pipeline Company

Second Revised Volume No. 1

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

First Revised Sheet No. 222 First Revised Sheet No. 222

Superseding: Original Sheet No. 222

GENERAL TERMS AND CONDITIONS

(Continued)

4. Requests for Service (Continued)

(b) Impact on Other Provisions. A Shipper paying for service under

a Negotiated Rate that is higher than the maximum rate for such

service stated on the Statement of Rates sheets is deemed to

have paid the maximum rate for purposes of scheduling and

capacity allocation pursuant to Sections 6 and 5 of the General

Terms and Conditions, for purposes of evaluating right-of-

first-refusal bids pursuant to Section 4.15 of the General

Terms and Conditions, and for purposes of selling capacity

pursuant to Section 4 of these General Terms and Conditions.

The highest rate the Shipper must match for right-of-first-

refusal matching purposes is the maximum rate set forth in this

Tariff.

accounting records so that revenues can be tracked to each

Negotiated Rate transaction.

(d) Discount-Type Adjustment. Subject to the limitations set forth

below, Transporter may seek to include Negotiated Rates in a

discount-type adjustment to the level of Transporter's recourse

rates in general rate changes initiated by Transporter under

Section 4 of the Natural Gas Act and rate changes initiated by

others under Section 5 of the Natural Gas Act. Transporter may

seek to include Negotiated Rates in such recourse rate

adjustment whenever the rate for service is below the posted

maximum rate for service under the applicable rate schedule for

all or part of the 12-Month base period and/or the nine Month

adjustment period for such rate change proceeding. However, if

the Negotiated Rate Service Agreement(s) was/were not in effect

during the base period, such discount may still be requested in

the recourse rate adjustment when the rate for service under

the Negotiated Rate Service Agreement is projected to be in

effect with rates below the otherwise applicable maximum

recourse rate as of the end of the 9-Month adjustment period

applicable to such rate proceeding.

(i) A discount adjustment to recourse rates shall only be

allowed to the extent that Transporter can meet the

standards required of an affiliate discount-type

adjustment, including requiring that Transporter shall have

the burden of proving that any discount granted is required

to meet competition. Transporter shall be required to

demonstrate that any discount-type adjustment does not have

an adverse impact on recourse rate Shippers by: