High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/04/2002, Docket: RP02-118-001, Status: Suspended

Substitute Third Revised Sheet No. 172 Substitute Third Revised Sheet No. 172 : Suspended

Superseding: Third Revised Sheet No. 172

 

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

25.4 Capacity Release and Right of First Refusal: A negotiated rate shall not

apply

as a price cap for capacity release transactions. For purposes of exercising

rights to continue service pursuant to Section 16 of these General Terms and

Conditions, the highest rate that the existing Shipper capacity holder must

match if it desires to retain all or a portion of its capacity, is the

applicable maximum tariff rate, including surcharges, for such service.

 

25.5 Filing Requirements: No later than the business day on which Transporter

commences service at a negotiated rate (or if the day on which Transporter

commences such service is not a business day, then the next business day

after

Transporter commences such service), Transporter will file with the

Commission

either its negotiated rate agreement or a numbered tariff sheet stating the

name of the Shipper, the duration of the contract, the actual negotiated

rate

or the formula used to calculate the rate, the applicable receipt and

delivery

points, the quantity of gas to be transported, the applicable Rate Schedule

for the service and an affirmation that the negotiated rate agreement does

not

deviate in any material aspect from the applicable form of service agreement

in Transporter's tariff.

 

25.6 Accounting for Costs and Revenues: The allocation of costs to, and the

recording of revenues from, service at negotiated rate(s) will follow

Transporter's normal practices associated with all of its services under

this

Tariff. Transporter will maintain separate records of negotiated rate

transactions for each billing period. These records shall include the

volumes

transported, the billing determinants, the rates and surcharges charged and

the revenue received associated with such transactions. Transporter will

separately identify such transactions in Statement G, I and J (or their

equivalents) filed in any general rate proceeding.

 

25.7 Rate Treatment: Transporter shall have the right to seek in future general

rate proceedings discount-type adjustments in the design of its rates

related

to negotiated rate agreements. In these situations, Transporter may seek a

discount-type adjustment based upon the greater of the negotiated rate

revenues received or the discounted rate revenues which otherwise would have

been received.

 

25.8 Limitations: This Section 25 does not authorize Transporter to negotiate

terms

and conditions of service.