High Island Offshore System, L.L.C.
Third Revised Volume No. 1
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Effective Date: 11/01/2007, Docket: RP08- 55-000, Status: Effective
Eighth Revised Sheet No. 173 Eighth Revised Sheet No. 173 : Effective
Superseding: Seventh Revised Sheet No. 173
GENERAL TERMS AND CONDITIONS
HIOS and Shipper may agree that a specified discounted rate will apply: (a) to
Rate Schedules IT, FT-1 and FT-2; (b) only if specified quantity levels are
actually achieved under Shipper's service agreement (with higher rates,
charges, and fees applicable to all quantities above those levels, or to all
quantities under Shipper's service agreement if the specified levels are not
achieved); (c) only to natural gas reserves committed by the Shipper pursuant
to the applicable Reserve Commitment Agreement with HIOS in the appropriate
form contained in these General Terms and Conditions; (d) only during specified
time periods; or (e) only to specified Points of Receipt, Points of Delivery,
transportation paths, or defined geographical areas; provided, however, that
any such discounted rates set forth above shall be between the minimum and
maximum rates applicable to the service provided under HIOS' Tariff.
Such forms of discounts shall not be considered a material deviation from HIOS'
pro forma service agreements as a result of such discounts and HIOS shall not
be required to file such agreements with the Commission as a non-conforming
agreement because of such discounts.
In addition, the discount agreement may include a provision that if one rate
component that 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 HIOS' 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 exceeds the Maximum Rate applicable to
that rate component. Such changes to rate components shall be applied
prospectively, commencing with the date a Commission Order accepts 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 that
ultimately are found to be just and reasonable.