Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 09/26/2005, Docket: RP05-582-000, Status: Effective

Third Revised Sheet No. 305 Third Revised Sheet No. 305 : Effective

Superseding: Second Revised Sheet No. 305

GENERAL TERMS AND CONDITIONS

(continued)

 

27. DISCOUNT TERMS

 

27.1 Any Customer desiring a discount of the maximum recourse rates

for service under Pipeline's open-access rate schedules must

submit a valid request for such discount pursuant to the

procedures of this Section 27. 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, Pipeline will log such request and

either deny or grant such request.

 

27.2 If and when Pipeline discounts the rates applicable for

service under any Service Agreement under Rate Schedules

included in Pipeline's FERC Gas Tariff, the amount of any such

discount shall be accounted for as a reduction of maximum

rates in the following sequence to the extent any of the

following components are included in the maximum rate; the

first item discounted shall be trackable rate components (if

any), to the extent not otherwise agreed to in approved

settlements, followed by the base rate (maximum less minimum

rate and excluding all other components specified here).

 

27.3 In the event that Pipeline agrees to discount its maximum

recourse rates under any of its open-access rate schedules,

Pipeline and Customer may agree to the types of discounts

specified herein without such discounts constituting a

material deviation from Pipeline's pro forma service

agreement. Pipeline 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, 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 delivered

(i.e., that the reservation charge will be adjusted in a

specified relationship to quantities actually delivered);

(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 27.5 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