Kinder Morgan Louisiana Pipeline LLC

Original Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-257-000, Status: Effective

Original Sheet No. 259 Original Sheet No. 259

 

GENERAL TERMS AND CONDITIONS

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34. DISCOUNTING

 

In the event that KMLP agrees to discount its rate to

Shipper below KMLP's maximum rate under Rate Schedules FTS and ITS,

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 KMLP's form of service

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

forth below shall be between the minimum and maximum rates applicable

to the service provided under the applicable rate schedule. Contracts

with Negotiated Rates or a Negotiated Rate Formula are governed by

Section 30 of these General Terms and Conditions. Without limitation

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

 

(a) The published index prices for specific Receipt

and/or Delivery 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:

 

(1) shall not change the underlying rate design;

 

(2) shall not include any minimum bill or minimum

take provision that has the effect of guaranteeing revenue;

 

(3) shall define the rate component to be

discounted; and

 

(4) shall be limited by the applicable maximum and

minimum rates.

 

(b) any of the factors set out in the Rates section of

the form of service agreement.