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. 258 Original Sheet No. 258

 

GENERAL TERMS AND CONDITIONS

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30.2 AWARD OF FIRM CAPACITY

 

To the extent the revenue level pursuant to the

Negotiated Rate(s) or Negotiated Rate Formula provided for in Section

30.1 above should equal or exceed the revenue level at the Recourse

Rate, the Shipper paying such Negotiated Rate(s) or rate(s) under a

Negotiated Rate Formula shall be treated, for capacity award purposes,

as if the rate(s) paid had been equal to the Recourse Rate. Any

Shipper, existing or new, paying the Recourse Rate(s) has the same

right to capacity for capacity award purposes as a Shipper willing to

pay an equal or higher Negotiated Rate(s) or rate(s) under a

Negotiated Rate Formula. If the Negotiated Rate or the rate under a

Negotiated Rate Formula are always higher than the corresponding

Recourse Rate, the Recourse Rate rather than the Negotiated Rate will

be used as the price cap for the Right of First Refusal pursuant to

Section 16.2 of these General Terms and Conditions. Where the

Negotiated Rate(s) or rate(s) under a Negotiated Rate Formula results

in revenue which is greater than the Recourse Rate during certain

portions of the relevant evaluation period but less than the revenue

at the Recourse Rate during other portions of the relevant evaluation

period (but the revenue pursuant to the Negotiated Rate(s) or rate(s)

under a Negotiated Rate Formula equals or exceeds that which would be

generated at the Recourse Rate for the entire evaluation period), the

value of bids and requests at the Negotiated Rate(s) or rate(s) under

a Negotiated Rate Formula for capacity award purposes shall be

evaluated as though the Recourse Rate applied under such bid or

request for the entire evaluation period. Where the Negotiated Rate(s)

or rate(s) under the Negotiated Rate Formula result in revenue which

is less than revenue at the Recourse Rate over the relevant evaluation

period, the value of the bids or requests at the Negotiated Rate(s) or

rate(s) under the Negotiated Rate Formula for capacity award purposes

shall be evaluated based on such lower revenue and shall be afforded a

correspondingly lower priority in a capacity award procedure than bids

or requests at the Recourse Rate. In applying this Section 30.2,

revenue associated with the Leased Capacity Charges, which passed

through to Enogex, will not be considered.

 

30.3 ACCOUNTING FOR COSTS AND REVENUES

 

The allocation of costs to and the recording of revenues

from service at Negotiated Rate(s) or under a Negotiated Rate Formula

will follow MEP's normal practices associated with all of its services

under this Tariff. MEP will maintain separate records of Negotiated

Rate and Negotiated Rate Formula transactions for each billing period.