Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 05/24/2010, Docket: RP10-627-000, Status: Effective

Fourth Revised Sheet No. 155 Fourth Revised Sheet No. 155

Superseding: Third Revised Sheet No. 155

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

31. DISCOUNTING PROCEDURES

 

31.1 Any Customer desiring a discount of the Maximum Recourse Rates for

service under Saltville's open-access rate schedules must submit a

valid request for such discount pursuant to the procedures of this

Section 31. To be considered a valid request, Customer must

complete and submit a request for discount via the LINK® System,

specifically including the information for all mandatory fields.

Upon receipt of a valid request for a discount, Saltville will log

such request and either grant or deny such request.

 

31.2 In the event that Saltville agrees to discount its Maximum Rates

under Rate Schedules FSS, ISS, IPS and/or ILS, Saltville and

Customer may agree to the types of discounts specified herein

without such discounts constituting a material deviation from

Saltville's pro forma service agreement. Saltville and Customer

may agree that a specified discounted rate will apply: (i) only to

specified quantities under the service agreement; (ii) only if

specified quantities are achieved or only with respect to

quantities below a specified level; (iii) only during specified

periods of the year or for a specifically defined period; (iv)

only to specified points, combination of points, zones, markets,

transportation paths or other defined geographic area(s); (v) only

to reserves committed by Customer; (vi) only in a specified

relationship to the quantities actually injected, withdrawn,

stored, parked or loaned (i.e., that the reservation charge will

be adjusted in a specified relationship to quantities actually

injected, withdrawn, stored, parked or loaned); (vii) so that the

applicable rate may be adjusted in the following manner: when one

rate component, which was equal to or within the applicable

Maximum and Minimum Recourse Rates at the time Customer received

the Discount Confirmation pursuant to Section 31.4 below

specifying the terms of the discount, subsequently exceeds the

applicable Maximum Recourse Rate or is below the applicable

Minimum Recourse Rate, so that such rate component must be

adjusted downward or upward to equal the new applicable Maximum or

Minimum Recourse Rate, then other rate components may be adjusted

upward or downward to achieve the agreed-upon overall rate, so

long as none of the resulting rate components exceed the Maximum

Recourse Rate or are below the Minimum Recourse Rate applicable to

the rate component (such changes to rate components shall be

applied prospectively, commencing with the date a Commission order

accepts revised Rate Statements; however, nothing contained herein

shall be construed to alter a refund obligation under applicable

law for any period during which rates which had been charged under

a discount agreement exceeded rates which ultimately are found to

be just and reasonable); and/or (viii) based upon published index

prices for specific receipt and/or delivery points or other

agreed-upon published pricing reference points for price

determination (such discounted rate may be based upon a single

published index price or the differential between published index

prices or arrived at by formula; provided that the discounted rate

shall not change the underlying rate design, shall not include any

minimum bill or minimum take obligation, and shall define the rate

component to be discounted). Notwithstanding the foregoing, no

discounted rate shall be less than the applicable Minimum Rate.

 

31.3 In the event that Saltville rejects Customer's request for a

discounted rate, Saltville shall notify Customer via e-mail of the

reason for such rejection.