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. 193 Original Sheet No. 193 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

26.6 During the period a Negotiated Rate is in place, the Negotiated

Rate shall govern and apply to KPC's service under the Service

Agreement and the otherwise applicable rate, rate component,

charge or credit shall not apply or be available to the Shipper.

Only those rates, components, charges or credits which are

superceded by a Negotiated Rate shall be ineffective during the

period that the Negotiated Rate is effective; all other rates,

rate components, charges, or credits prescribed, required,

established, or imposed by this Tariff shall remain in effect. At

the end of the period during which Negotiated Rates are in effect,

the otherwise applicable Tariff rates or charges shall govern any

service provided to Shipper.

26.7 The allocation of costs to, and the recording of revenues from,

service at negotiated rates will follow KPC's normal practices

associated with all of its services under this Tariff. KPC will

maintain separate records of Negotiated Rate transactions for each

billing period. These records will include the volumes

transported, the billing determinants, the rates and surcharges

charged, and the revenue received associated with such

transactions. KPC will separately identify such transactions in

Statement G, I, and J (or their equivalents) filed in any general

rate proceeding.

26.8 KPC will not seek in future general rate proceedings discount type

adjustments to demand charge billing determinants for capacity

converted from Recourse Rate service agreements to Negotiated Rate

service agreements, unless the Recourse Rate had been discounted.

In those situations where KPC had granted a market justified

discount to the Recourse Rate and subsequently converted the

service agreement to a Negotiated Rate service agreement, KPC may

seek a discount type adjustment. Such adjustment would be based

on the greater of: (i) the Negotiated Rate revenues received or

(ii) the discounted Recourse Rate revenues which otherwise would

have been received.

26.9 This Section 26 does not authorize KPC to negotiate terms and

conditions of service.