Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 247 Original Sheet No. 247 : Effective

 

GENERAL TERMS AND CONDITIONS

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38. NEGOTIATED RATES

 

38.1 PRECONDITIONS TO NEGOTIATED RATES

 

Rates to be charged by Trailblazer for service to any

Shipper under Rate Schedule FTS or ITS may deviate in either form

or level or both from the applicable maximum rate level in this

Tariff, subject to the following provisions:

 

(a) Trailblazer and Shipper have executed a valid

Agreement containing therein or in a related agreement a specific

mutual understanding that Negotiated Rate(s) or a Negotiated Rate

Formula will apply to service for that Shipper;

 

(b) At the time of execution of the Agreement (or

the amendment to an Agreement), which first provides for the

applicability to Shipper of the Negotiated Rate(s) or Negotiated

Rate Formula, service was available pursuant to the terms and

conditions (not modified by this Section 38) of Rate Schedule FTS

or ITS of this Tariff, as applicable; and

 

(c) No later than the Business Day on which

Trailblazer commences service at such Negotiated Rate(s) or

Negotiated Rate Formula (or if the day on which Trailblazer

commences service is not a Business Day, then no later than the

next Business Day after Trailblazer commences service), Trailblazer

will file a tariff sheet advising the Commission of such Negotiated

Rate or Negotiated Rate Formula, stating the name of Shipper, the

type of service, the Receipt and Delivery Point(s) applicable to

the service, the volume of the gas to be transported, any other

charges, and specifying either: (i) the specific Negotiated Rate

included in such Agreement; or (ii) the Negotiated Rate Formula

included in such Agreement with sufficient specificity such that

the rate in effect from time to time can be readily calculated. The

tariff sheet must also incorporate a statement that the Agreement

does not deviate from the form of Service Agreement in any material

respect.

 

38.2 CAPACITY ALLOCATION

 

To the extent the revenue level pursuant to the

Negotiated Rate(s) or Negotiated Rate Formula provided for in

Section 38.1 above should exceed the revenue level at the Recourse

Rate, the Shipper paying such Negotiated Rate(s) or rate(s) under a

Negotiated Rate Formula shall be treated, for all capacity