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.