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.