Questar Pipeline Company
First Revised Volume No. 1
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Effective Date: 06/21/2005, Docket: RP05-349-000, Status: Effective
Second Revised Sheet No. 89 Second Revised Sheet No. 89 : Effective
Superseding: First Revised Sheet No. 89
GENERAL TERMS AND CONDITIONS
the additional facilities, except as may otherwise be provided in the
shipper's service agreement.
Shipper's payment to Questar shall include the full cost of the
facility, the tax burden created by the payment as well as the tax on tax
effect generated by the payment. Reimbursement for federal income taxes on
shipper's payment will be computed by first determining the tax on tax effect,
and then deducting the present value of the future tax benefit provided by the
future depreciation of plant involved in the payment.
The tax-on-tax effect will be determined by the product of (a) the
dollar amount qualifying as a contribution in aid of construction under the
Tax Reform Act of 1986 and (b) the "tax rate" divided by 1 minus the tax rate:
The present value of the tax benefit provided by the future depreciation
of plant shall be calculated by Questar according to the present value formula
shown in § 5 to these General Terms and Conditions. Shipper shall have no
ownership interest in the additional facilities installed by Questar.
16. Reserved for Future Use