Quest Pipelines (Kpc)

Second Revised Volume No. 1

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Effective Date: 02/01/2008, Docket: RP08-174-000, Status: Effective

Original Sheet No. 192 Original Sheet No. 192 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

 

 

26. NEGOTIATED RATES

 

26.1 Notwithstanding anything to the contrary contained in this Tariff,

including the Rate Schedules contained herein, KPC and Shipper may

agree to a Negotiated Rate for service under any Rate Schedule,

provided Shipper has not acquired its capacity pursuant to the

Assignment of Service provisions of Section 14 hereof. KPC's

maximum effective rate (maximum base rate plus all applicable

surcharges) for service under any such Rate Schedule is available

as a Recourse Rate for any Shipper that elects not to negotiate a

rate hereunder.

 

26.2 A Negotiated Rate shall mean a rate calculated pursuant to a rate

formula, or any rate for service where, for some portion of the

contract term, one or more of the individual rate components may

exceed the maximum charge, or may be less than the minimum charge

for such component. Negotiated Rates shall be mutually agreed to

and set forth in writing.

 

26.3 KPC and Shipper may agree to a Negotiated Rate for the entire term

of a Service Agreement, or may agree to a Negotiated Rate for some

portion of the term of a Service Agreement. KPC and Shipper may

agree to apply the Negotiated Rate to all or a portion of capacity

under Shipper's Service Agreement. A Service Agreement

incorporating such a Negotiated Rate shall be referred to herein

as a "Negotiated Rate Agreement."

 

26.4 A Shipper paying for service under a Negotiated Rate that is

higher than the maximum rate is deemed to have paid the maximum

rate for purposes of scheduling, curtailment, or interruption of

service. The rate considered for scheduling, curtailment, or

interruption of firm service shall be the reservation charge or

other revenue that KPC is guaranteed to receive, regardless of

actual usage.

 

26.5 To make a Negotiated Rate effective, KPC shall file, at least one

day prior to the effective date of such Negotiated Rate, a

numbered tariff sheet in this Tariff, stating: the Shipper's exact

legal name, the Negotiated Rate or the formula used to calculate

the rate, the applicable Rate Schedule, the Points of Receipt and

Delivery, the contract quantities, the contract duration, and an

affirmation that the affected Service Agreement does not deviate

in any material respect from the Form of Service Agreement in this

Tariff.