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)}]