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. 271 Original Sheet No. 271

 

GENERAL TERMS AND CONDITIONS

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34. DISCOUNTING

 

(a) In the event that MEP agrees to discount its rate to

Shipper below MEP's maximum rate under Rate Schedules FTS or ITS, as

applicable, the discount terms shall be reflected in the applicable

Agreements or associated discount agreements and will apply without

the discount constituting a material deviation from MEP's form of

service agreement; provided, however, that any such discounted rates

shall be between the minimum and maximum rates applicable to the

service provided under the applicable rate schedule. Without

limitation of the foregoing, such discounted rates may be based on:

 

(1) The published index prices for specific Points or

other agreed-upon published pricing reference points for price

determination the use of which is not inconsistent with Commission

policy (such discounted rate may be based upon the differential

between published index prices or arrived at by formula). Such

discounted rate:

 

(i) shall not change the underlying rate design;

 

(ii) shall not include any minimum bill or

minimum take provision that has the effect of guaranteeing revenue;

 

(iii) shall define the rate component to be

discounted; and

 

(iv) shall be limited by the applicable maximum

and minimum rates.

 

(2) any of the factors set out in subsection (b).

 

(b) Except as otherwise provided in any written agreement(s)

between the parties in effect during the term hereof, Shipper shall

pay MEP the applicable maximum rate(s) and all other lawful charges

as specified in MEP's applicable rate schedule. Shipper and MEP may

agree that Shipper shall pay a rate other than the applicable maximum

rate so long as such rate is between the applicable maximum and

minimum rates specified for such service in the Tariff. MEP and

Shipper may agree that a specific discounted rate will apply only to

certain volumes under the agreement. The parties may agree that a

specified discounted rate will apply only to specified volumes (MDQ

or commodity volumes) under the agreement; that a specified