Mojave Pipeline Company

Second Revised Volume No. 1

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Effective Date: 03/22/2010, Docket: RP10-330-000, Status: Effective

Original Sheet No. 282 Original Sheet No. 282

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

38.OFF-SYSTEM CAPACITY

 

38.1 Transporter may enter into transportation and/or storage agreements

with upstream and downstream entities, including other interstate

and intrastate pipelines and storage providers ("off-system

capacity"). In the event Transporter acquires off-system capacity,

Transporter will use such capacity for operational reasons or to

render service for its Shippers on the acquired capacity, pursuant

to Transporter's Tariff and subject to Transporter's currently

approved rates (including any third party charges required to be

paid pursuant to Section 38.2.) In the event the off-system

capacity is subject to renewal limitations, as specified in the

third-party pipeline's tariff and/or provided by FERC Regulations,

Transporter will indicate in its posting of firm unsubscribed

capacity any limitation to the extension rights that will apply as

a result of such limitations on the off-system capacity. For

purposes of transactions entered into subject to this section, the

"Shipper must hold title" requirement shall not be applicable to

the acquired capacity.

 

38.2 Third Party Charges. If Transporter acquires off-system capacity

from a third party(s) pursuant to Section 38.1 above and provides

transportation and/or storage service for the benefit of

Shipper(s), such Shipper(s) may, on a not unduly discriminatory

basis, be required to pay Transporter, in addition to any

applicable rates and charges assessed pursuant to Transporter's

Tariff, the rates and charges Transporter is obligated to pay such

third party(s) for the off-system capacity acquired on behalf of

the shipper. Off-system capacity charges incurred by Transporter

shall be borne by the Shipper(s) using the off-system capacity.

Such charges may include, but are not limited to, daily reservation

and commodity charges and applicable surcharges, fuel and power

charges or retention, compression fees, balancing or storage fees,

measurement fees, processing fees and/or facility charges that are

assessed by the third party. Unless otherwise mutually agreed,

such Third Party Charges shall be assessed by Transporter to

Shipper(s) in the same manner (fixed rate, volumetric, etc.) the

charges are assessed to Transporter and set forth as separate items

on the monthly invoices rendered to Shipper. If capacity is

acquired on behalf of multiple shippers, any fees or charges not

directly attributable to reservation and/or usage charges will be

allocated pro rata among those shippers based on the contract

quantity of each shipper.