Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 11/09/2009, Docket: RP09-855-002, Status: Effective

Original Sheet No. 616F Original Sheet No. 616F

 

EXHIBIT B [Discount Agreement - NSS]

DATED ............

EFFECTIVE ...................

 

Shipper: ...................

Contract No.: ...................

 

ARTICLE 1

DISCOUNT PARAMETERS

 

1.1 Discount Term: From..........Through..........

 

1.2 Discounted Rates:

 

(a) Discounted Monthly Base Reservation Rate: $.......... /Dth. of MDQ.

(b) Discounted Base Commodity Rate: $.......... /Dth. of MDQ.

 

1.3 Discounted Firm Quantities:

 

(a) Discounted Contract MDQ: .......... Dth./day.

(b) Discounted Contract MSV: .......... Dth.

 

1.4 Authorized Overrun Rate(s): [Describe the applicable discount rate for Authorized Overrun Service,

if any.]

 

1.5 Other Rate Related Provisions: [Describe any other rate-related provision authorized by the

applicable Rate Schedule and/or Natural's list of permissible discount provisions and which are

not otherwise covered by the Discount Agreement.]

 

ARTICLE 2

DISCOUNT TERMS AND CONDITIONS; APPLICABLE CHARGES

 

2.1 General Discount Rate Limitations: The Discounted Rates shall apply only to service provided to

Shipper by Natural under the NSS Agreement during the Discount Term, up to a maximum aggregate firm

quantity equal to the respective Discounted Contract MDQ and the Discounted Contract MSV set forth in

Section 1.3 above, for all quantities stored on a firm basis under the NSS Agreement and any

associated capacity release replacement agreements. For any aggregate quantities stored on a firm

basis for Shipper and any associated capacity release replacement shippers which are in excess of the

Discounted Contract MDQ or the Discounted Contract MSV, as applicable, Shipper shall be charged the

greater of: (a) the 100% load factor equivalent of the Discounted Rates; and (b) the 100% load

factor equivalent of the applicable maximum monthly base reservation rate set forth in Natural's FERC

Gas Tariff, as may be revised from time to time.

 

2.2 Discountable Third Party Surcharges: From time to time, certain reservation and/or commodity

surcharges may be approved by the FERC for inclusion in Natural's FERC Gas Tariff which Natural is:

(i) required to collect from Shipper and remit to the FERC or to another third party; and (ii)

permitted to discount the amount of such surcharge from the applicable maximum rate set forth in

Natural's FERC Gas Tariff ("Discountable Third Party Surcharges"). [Describe any applicable

surcharges covered by this Section and the applicability of such surcharges to Shipper.]

 

2.3 Applicable Maximum Rates, Charges, and Surcharges: Unless otherwise expressly provided in this

Agreement or agreed to in writing by Natural, all applicable maximum rates, charges, surcharges, and

penalties of any nature set forth in Natural's FERC Gas Tariff, as may be revised from time to time,

shall apply to service provided to Shipper under the Storage Agreement, including without limitation

all applicable: (i) Fuel and Gas Lost and Unaccountable For charges; (ii) authorized and unauthorized

overrun charges; (iii) reservation surcharges; (iv) commodity rates, charges and surcharges; (v) ACA

surcharges; and (vi) gathering charges, offshore charges, and lateral line charges.