Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 07/22/2010, Docket: RP10-872-000, Status: Effective

Fifth Revised Sheet No. 2901 Fifth Revised Sheet No. 2901

Superseding: Fourth Revised Sheet No. 2901

 

GENERAL TERMS AND CONDITIONS

Section 23

 

 

23. Negotiated Rates

 

23.1 Gulf South and Customer may negotiate a rate for service under any cost-based

rate schedule contained in this Tariff. A negotiated rate shall be any rate

which has the ability to exceed the applicable maximum tariff rate and/or the

ability to be less than the minimum tariff rate for any month or is based upon a

rate design other than Straight Fixed Variable. The recourse rate is available

to any Customer that does not desire to negotiate a rate with Gulf South. The

recourse rate is defined as the maximum reservation charge, if applicable, and/or

the maximum commodity charge set forth on Gulf South's rate sheets for the

applicable cost-based service.

 

23.2 For purposes of awarding capacity and determining the best bid pursuant to

Section 7.4 and for scheduling interruptible transportation pursuant to Section

11.4, Customers willing to pay a negotiated rate which, when calculated on a 100%

load factor basis, exceeds the maximum tariff rate, will be considered to be

paying the maximum tariff rate. Under Section 30, the highest rate the original

Customer must match if it wishes to continue its firm service is the maximum

tariff rate.

 

23.3 Where negotiated rates include an option fee, the applicable rate will be

calculated as follows for purposes of scheduling interruptible transportation

under Section 11.4: (i) the transportation rate, plus (ii) the quotient of the

total value of the option fee divided by the volume applicable to the option fee.

For purposes of determining the best bid pursuant to Section 29.1(D) and Section

30.2(e), the option fee will be included in the same manner in the net present

value calculation.

 

23.4 The following procedure shall be used to file all negotiated rate letter

agreements (except for short-term capacity release agreements containing

negotiated rate provisions, which shall be posted to Gulf South's Informational

Postings Website): no later than the business day on which Gulf South commences

service at a negotiated rate (or if the day on which Gulf South commences such

service is not a business day, then the next business day after Gulf South

commences such service), Gulf South shall file with the Commission a copy of the

negotiated rate agreement, and an affirmation that the negotiated rate agreement

does not deviate in any material aspect from the applicable form of service

agreement in Gulf South's tariff.

 

The following procedure shall be used to post all short-term capacity release

agreements containing negotiated rate provisions to Gulf South's Informational

Postings Website: no later than the business day on which Gulf South commences

service at a negotiated rate for a short-term capacity release agreement (or if

the day on which Gulf South commences such service is not a business day, then the

next business day after Gulf South commences such service), Gulf South shall post

to its Informational Postings Website a copy of the capacity release agreement and

the negotiated rate agreement, and an affirmation that the negotiated rate

agreement does not deviate in any material aspect from the applicable form of

service agreement in Gulf South's tariff.