Cimarron River Pipeline, LLC

Original Volume No. 1

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Effective Date: 09/01/2008, Docket: CP08-17-001, Status: Effective

Original Sheet No. 131 Original Sheet No. 131

 

GENERAL TERMS AND CONDITIONS

 

2. QUALITY continued

 

2.4 Gas Processing continued

 

(i) Transporter shall place the net revenues it receives from

extracted NGLs attributable to Strangers' Gas from the processing plant owner

or operator in a processing account and shall distribute the revenues as

follows:

 

1. If prior to the beginning of each month, a Shipper or other

processing rights owner notifies Transporter that it is claiming the right to

process the volumes to be transported pursuant to a TSA that actually flow

through the processing plant but for which the Shipper or other processing

rights owner does not have a processing arrangement with the processing

plant, Transporter will allocate the revenue received from the processing

plant first to all notifying Shippers or other processing rights owners on a

pro rata GPM basis. The notification will be made to Transporter by the

nomination process and will include an affidavit.

 

2. The remainder of the revenues, after the revenues are

allocated to the Shippers or other processing rights owners pursuant to the

above paragraph, will be credited to the transportation commodity rates as a

surcharge for a one year period. Transporter will file the surcharge for

accumulated revenues received from processing related to Strangers' gas when

the annual total would result in a surcharge that is greater than $0.02/Dth

based upon the billing determinants underlying the currently effective

transportation rates.

 

(j) In the event Transporter is held liable for any revenues which

have been allocated and distributed to any Shipper or other processing rights

owner, in addition to any other remedy it may have, Transporter shall have the

right to reduce the amount of revenues to be distributed pursuant to the

transportation commodity rate crediting methodology set forth above for future

months by the amount paid by Transporter for such liability including

attorneys' fees and court costs.