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. 272 Original Sheet No. 272

 

GENERAL TERMS AND CONDITIONS

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discounted rate will apply only if specified volumes are achieved or

only if the volumes do not exceed a specified level; that a specified

discounted rate will apply only during specified periods of the Year

or for a specifically defined period; that a specified discounted

rate will apply only to specified points, zones, mainline segments,

supply areas, transportation paths, markets or other defined

geographical area(s); that a specified discounted rate(s) will apply

in a specified relationship to the volumes actually transported;

(i.e., that the reservation charge will be adjusted in a specified

relationship to volumes actually transported); that a discounted rate

may be based on a formula, including a formula utilizing pricing

indices consistent with Section 34 of the General Terms and

Conditions of MEP's FERC Gas Tariff; and/or that a specific discount

rate shall apply only to reserves dedicated by Shippers to MEP's

system. Notwithstanding the foregoing, no discount agreement may

provide that an agreed discount as to a certain volume level will be

invalidated if the Shipper transports an incremental volume above

that agreed level. In addition, the discount agreement may include a

provision that if one rate component which was at or below the

applicable maximum rate at the time the discount agreement was

executed subsequently exceeds the applicable maximum rate due to a

change in MEP's maximum rates so that such rate component must be

adjusted downward to equal the new applicable maximum rate, then

other rate components of the same Agreement or a different Agreement

for the same or a different service may be adjusted upward to achieve

the agreed overall rate, so long as none of the resulting rate

components exceed the maximum rate applicable to that rate component.

Such changes to rate components shall be applied prospectively,

commencing with the date a Commission order accepts revised tariff

sheets. However, nothing contained herein shall be construed to

alter a refund obligation under applicable law for any period during

which rates which had been charged under a discount agreement

exceeded rates which ultimately are found to be just and reasonable.

 

(c) Surcharges. MEP may agree to discount any surcharges

applicable to any service Agreement to the maximum extent permitted

by Commission policy.

 

(d) If the parties agree upon a rate other than the

applicable maximum rate, such written Agreement shall specify that

the parties mutually agree either: (1) that the agreed rate is a

discount rate; or (2) that the agreed rate is a Negotiated Rate (or

Negotiated Rate Formula). In the event that the parties agree upon a

Negotiated Rate or Negotiated Rate Formula, this Agreement shall be

subject to Section 30 of the General Terms and Conditions of MEP's

Tariff.