Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 09/04/2008, Docket: RP08-488-000, Status: Effective

Second Revised Sheet No. 300 Second Revised Sheet No. 300

Superseding: First Revised Sheet No. 300

 

GENERAL TERMS AND CONDITIONS

(continued)

 

24. NEGOTIATED RATES

 

Pipeline and Customer may mutually agree on a negotiated rate or

rate formula with respect to rates, rate components, charges, or

credits differing from the otherwise applicable recourse rate

under any rate schedule in this Tariff.

 

24.1 Definition

 

A negotiated rate may be less than, equal to, or greater than the

maximum recourse rate and/or the minimum rate; may be a rate

design other than straight fixed-variable; and may include a

minimum quantity. The recourse rates will be available to any

Customer that does not wish to negotiate a rate.

 

24.2 Limitations

 

This Section 24 does not authorize the negotiation of terms and

conditions of service.

 

24.3 Allocation of Capacity

 

For purposes of allocating capacity pursuant to Sections 4.1, 8

and 9 of the GT&C of Pipeline's Tariff, a Customer is deemed to

have paid the reservation charge that it has agreed to pay or that

Customer actually pays with the following exceptions: (a) a

Customer that is willing to pay (i) a negotiated rate with a

reservation charge component that exceeds the maximum reservation

charge component of the Recourse Rate, or (ii) a volumetric or

formula-type negotiated rate with a revenue stream guaranteed by

the negotiated rate Customer that exceeds or is equal to the

maximum reservation charge component of the Recourse Rate, is

deemed to have paid the maximum reservation charge component of

the Recourse Rate; and (b) a Customer with a volumetric or

formula-type negotiated rate that is willing to guarantee a

revenue stream less than the maximum reservation charge component

of the Recourse Rate is deemed to have paid a reservation charge

equal to the amount of the guaranteed revenue stream.

 

24.4 Bidding for Capacity

 

For purposes of exercising rights to continue service pursuant to

Section 4.2 of the GT&C of Pipeline's Tariff, the highest rate

that a Customer must match (based on its reservation charge

component and any revenue guarantee) if it desires to retain all

or a portion of its capacity and continue to receive firm service

under the same Rate Schedule beyond the expiration date of such

Long-Term Firm Service Agreement is the maximum Recourse Rate.

 

24.5 Capacity Release

 

Except as expressly provided for in Section 9 of the General Terms

and Conditions, the release of capacity under a negotiated rate

agreement is capped at the maximum recourse rate; provided,

however, the negotiated rate Customer will continue to be

obligated to pay Pipeline the difference by which the negotiated

rate exceeds the rate paid by the Replacement Customer. Pipeline

and a negotiated rate Customer may agree upon payment obligations

and crediting mechanisms, which vary from or are different from

those set forth in Pipeline's capacity release provisions.