Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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Effective Date: 11/02/2009, Docket: RP10-24-000, Status: Effective

Second Revised Sheet No. 184 Second Revised Sheet No. 184

Superseding: First Revised Sheet No. 184

 

GENERAL TERMS AND CONDITIONS

(continued)

 

 

31. DISCOUNTING

 

From time to time Shipper and Transporter may agree in writing on

a level of discount of the otherwise applicable rates and

charges in addition to a basic discount from the stated maximum

rates. For example, Transporter may provide a specific

discounted rate:

 

(1) to certain specified quantities under the Service Agreement;

(2) if specified quantity levels are actually achieved or with

respect to quantities below a specified level;

(3) to production reserves committed by the Shipper;

(4) during specified time periods;

(5) to points of receipt, points of delivery, supply areas,

transportation paths or defined geographical areas;

(6) in a specified relationship to the quantities actually

transported (i.e., that the rates shall be adjusted in a

specified relationship to quantities actually transported);

(7) based on published index prices for specific receipt or

delivery points or other agreed upon pricing reference points

for price determination or based on any other formula (Such

discounted rate may be based on the published index price point

differential or arrived at by formula. Any Service Agreement

containing such a discount will identify what rate component is

discounted. To the extent the firm reservation charge is

discounted, the index price differential or rate formula shall

be calculated to state a rate per unit of MAXDTQ.); or

(8) to provide that if one rate component which was equal to or

within the applicable maximum and minimum rate at the time

the discount agreement was executed subsequently exceeds the

applicable maximum rate or is below the applicable minimum

rate due to a change in Transporter's maximum rates and/or

minimum rates, so that such rate component must be adjusted

downward or upward to equal the new applicable maximum or

minimum rate, then other rate components may be adjusted

upward or downward to achieve the agreed-upon overall rate,

so long as none of the resulting rate components exceed the

maximum rate or are below the minimum rate applicable to the

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.

 

In all circumstances the discounted rate shall be between the

maximum rate and the minimum rate applicable to the service

provided.