Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-418-000, Status: Effective

Original Sheet No. 9N Original Sheet No. 9N

 

STATEMENT OF NEGOTIATED RATES

 

(b) Any difference between the amount of Reservation Charges that Customer paid Pipeline for

service under the Service Agreement during the periods described in footnotes 3(a)(i) and

3(a)(ii) above and the amount of Reservation Charges that Customer would have been

required to pay if the rates established in footnote 1 of this Agreement had been

adjusted in accordance with footnote 2(a)(ii) of this Agreement as of the Service

Commencement Date shall be reconciled by a lump sum payment, or credit, as applicable, as

part of the first invoice cycle after such adjustment becomes effective. The monthly

amounts reconciled into the lump sum payment or credit shall be adjusted to reflect

interest from the date on which the original payment related to each reconciled amount

was originally paid to Pipeline until the date on which the lump sum payment or credit is

due. If Customer owes an amount to Pipeline under this footnote 3(b), such amount shall

be due at the same time as all other amounts are due under the applicable invoice. If

Pipeline owes an amount to Customer under this footnote 3(b), such credit shall become

effective as of the date of the first invoice after the footnote 2(a)(ii) adjustment. If

the credit amount is greater than the amount that Customer owes to Pipeline under such

invoice, then Pipeline shall promptly pay Customer such difference. For purposes of the

interest calculations contemplated under this footnote 3(b) the amount of interest shall

be computed at the same rate of interest and in the same manner as prescribed for

pipeline refunds as set forth in Section 154.501(d) of the FERC's regulations.

 

4/ Future Recourse Rates

 

(a) Notwithstanding anything to the contrary in this Agreement, (i) neither Party shall make

a filing with the FERC or any other governmental authority or take any position in any

proceeding before the FERC or any other governmental authority that attempts to negate or

alter, or is otherwise inconsistent with, any provisions of this Agreement, and (ii) if a

Party makes a filing or takes a position in any proceeding in contravention of clause (i)

of this footnote 4(a), the other Party shall have all rights to oppose, protest or

otherwise challenge such filing or position.

 

(b) Notwithstanding anything to the contrary in this Agreement, except with respect to (i)

the cost deferral provisions related to Pipeline's Phase III project contained in the

rate case settlement filed on June 28, 2005, in FERC Docket No. RP04-360 and (ii) any

cost deferrals approved by the FERC prior to the date of this Agreement, in the event

that Pipeline proposes in any future proceeding before the FERC to defer recovery of any

costs for ratemaking purposes, Customer reserves all rights to oppose, protest or

otherwise challenge such proposal.

 

5/ Applicability of Negotiated Rates: Notwithstanding anything to the contrary in this

Agreement, the rates set forth in footnote 1 of this Agreement (as adjusted by footnote 2

hereof) are "Negotiated Rates" and will apply only to deliveries under the Service Agreement

at the Primary Point(s) of Delivery specified in the Service Agreement from and after the

Service Commencement Date, and to other delivery points utilized on a secondary basis. In

the event that Customer changes any of the Primary Point(s) of Delivery specified under the

Service Agreement, then, unless Pipeline and Customer mutually agree in writing otherwise,

this Agreement shall terminate effective immediately and the rates applicable after this

Agreement terminates shall be Pipeline's applicable maximum recourse rates in effect pursuant

to Pipeline's Tariff. In the event that Customer releases its firm transportation rights

(other than through permanent release in accordance with Section 9.6(b)(3) of the GT&C) under

the Service Agreement after the Service Commencement Date, Customer shall continue to be

obligated to pay Pipeline for the difference, if any, by which the Negotiated Rate (and all

other applicable rates contemplated in footnotes 1 and 2 above) exceeds the release rate,

provided that Customer shall be entitled to retain the difference, if any, by which the

release rate exceeds the Negotiated Rate.

 

6/ Effect of Negotiated Rates: Pursuant to the GT&C of Pipeline's Tariff, the Negotiated Rates

set forth herein shall collectively constitute a "negotiated rate." The Parties, by

execution of this Agreement, agree that the otherwise generally applicable maximum recourse

rate(s) in effect pursuant to Pipeline's Tariff shall not apply to or be available to

Customer for service under the Service Agreement during the term of this Agreement,

notwithstanding any adjustments to such generally applicable maximum recourse rate(s) which

may become effective during the term of this Agreement.