ANR Storage Company

Original Volume No. 1

Effective Date: 11/01/2007, Docket: RP08- 16-000, Status: Effective

First Revised Sheet No. 155D First Revised Sheet No. 155D : Effective

Superseding: Original Sheet No. 155D

GENERAL TERMS AND CONDITIONS

(Continued)

17. TYPES OF DISCOUNTS

Under its Rate Schedules Seller is permitted to discount its rates between its

Maximum and Minimum Rates on a basis that is not unduly discriminatory. From

time to time Customer and Seller may agree in writing on a level of discount of

the otherwise applicable rates and charges in addition to a basic discount from

the stated Maximum Rates. For example, Seller may provide a specific

discounted rate:

(i) to certain specified quantities under the Service Agreement,

(ii) if specified quantity levels are actually achieved or with respect to

quantities below a specified level,

(iii) during a specified time period,

(iv) to points of injection, points of withdrawal, or defined geographical

areas, or

(v) in a specified relationship to the quantities actually injected or

withdrawn (i.e., that the rates shall be adjusted in a specified

relationship to quantities actually injected or withdrawn).

In all circumstances the discounted rate shall be between the Maximum Rate and

the Minimum Rate applicable to the service provided.

Such forms of discounts shall not be considered a material deviation from Seller's

pro forma Service Agreement as a result of such discount and Seller shall not be

required to file such Agreement with the Commission as a non-conforming contract

because of such discount. Seller shall, however, file any required reports

related to such discounts pursuant to the Commission's regulations.

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 Seller's Maximum Rates so that such rate component must

be adjusted downward to equal the new applicable Maximum Rate, then other rate

components may be adjusted upward to achieve the agreed overall rate, as 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 revised

Tariff sheet rates. However, nothing contained herein shall be construed to

alter a refund obligation under applicable law for any period during which

rates that had been charged under a discount agreement exceeded rates, which

ultimately are found to be just and reasonable.