MidContinent Express Pipeline LLC
Original Volume No. 1
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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective
Original Sheet No. 102 Original Sheet No. 102
GENERAL TERMS AND CONDITIONS
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1.7 CENTERPOINT LATERAL
CenterPoint Lateral shall mean the lateral extending 4 miles
south of MEP's mainline from a point near the boundary of Zone 1 and
Zone 2 in Madison Parish, LA. Gas receipts into MEP's system from
the CenterPoint Lateral shall be deemed to be in Zone 2, and gas
deliveries from the System via the CenterPoint Lateral shall be
deemed to be in Zone 1.
1.8 COMMENCEMENT DATE
"Commencement Date" shall mean the first date on which any
Shipper has commenced service under an Agreement on any portion of
the System after the end of Interim Period Service.
1.9 CONTRIBUTION IN AID OF CONSTRUCTION OR CIAC
"Contribution in Aid of Construction" or "CIAC" shall,
unless otherwise mutually agreed, mean the payment made to MEP for
the installation of new or expanded facilities at interconnection
points for the receipt by MEP or the delivery by MEP of gas on behalf
of Shipper. Unless otherwise agreed, the CIAC shall include all
construction costs, including any filing fee (Investment Costs), on a
mutually agreed payment schedule. In addition, if applicable, Shipper
shall provide a reimbursement amount to compensate for income tax
effects associated with such facilities (Tax Reimbursement). The Tax
Reimbursement, where applicable, shall be an amount to compensate for
the income tax effects of the CIAC, according to the following
formula;
Tax Reimbursement = [tax rate x (Investment Cost - present
value of tax depreciation)] x [1 + {tax rate/(1 - tax rate)}]