National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 10/25/2009, Docket: RP09-1072-000, Status: Effective

First Revised Sheet No. 486 First Revised Sheet No. 486

Superseding: Original Sheet No. 486

 

GENERAL TERMS AND CONDITIONS

 

39. DISCOUNTED AGREEMENTS

 

In any amendment to a service agreement providing for discounted rates

Transporter and Shipper may agree to one or more of the following

provisions:

 

(a) that a specified discounted rate will apply only to specified

quantities under the agreement;

 

(b) that a specified discounted rate will apply only if specified

quantities are achieved or only with respect to quantities below

a specified level;

 

(c) that a specified discounted rate will apply only during specified

periods of the year or for a specifically defined period, which

provision may permit Transporter to specify whether the maximum

rate or a discount rate would apply to periods beyond the

expiration of the primary term of the service agreement;

 

(d) that a specified discounted rate will apply only to specified

points, combinations of points, zones or other defined

geographical area(s), which provision may include an explanation

of how reservation or other fixed charges are calculated when

non-discounted points, zones or areas are used;

 

(e) that a specified discounted rate will apply in a specified

relationship to the quantities actually transported [i.e., that

the reservation charge will be adjusted in a specified

relationship to quantities actually transported];

 

(f) that a specified discounted rate is based on published index

prices for specific receipt and/or delivery points or other

agreed upon published pricing reference points (such discounted

rate may be based upon the differential between published prices

or arrived at by formula). Any agreement containing such

discounted rate shall specify the rate component(s) to be

discounted. To the extent the firm reservation charge is

discounted, the index price differential rate formula shall be

calculated to state a rate per maximum daily quantity.

Furthermore, such discount shall not change the underlying rate

design to include any minimum bill or minimum take provision that

has the effect of guaranteeing revenue;

 

(g) that if one rate component, which was at or below the applicable

maximum rate at the time the discount agreement was executed,

subsequently exceeds the applicable maximum rate or is less than