T.W. Phillips Pipeline Corp.

Original Volume No. 1

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Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 55 Original Sheet No. 55

GENERAL TERMS AND CONDITIONS

(Continued)

15.2. Filing Requirement – No later than the business day on which Transporter com-

mences service at a Negotiated Rate (or if the day on which Transporter commences

service is not a business day, then no later than the next business day there-

after), Transporter will file either the FT or IT Agreement or a tariff sheet

stating the exact legal name of the Shipper, the Negotiated Rate, the Rate

Schedule, the receipt and delivery points, the contract quantity, and , where

applicable, the exact formula underlying a Negotiated Rate for any FT or IT Agree-

ment. To the extent any transportation agreement deviates in any material

respect from the Form of Service Agreement in the tariff for the applicable Rate

Schedule, such agreement will be filed with the Commission.

15.3. Precondition – Transporter and Shipper have executed an FT or IT Agreement for a

Negotiated Rate. At the time of execution, service was available for Shipper

under one or more of the Rate Schedules generally applicable to all Shippers at a

Recourse Rate.

15.4. Allocation of Capacity – For purposes of allocating subsequent capacity, whether

by Transporter or pursuant to the capacity release provisions of Section 22 of

the GT&C, a Negotiated Rate Shipper paying a rate higher than the maximum applic-

able Recourse Rate will be deemed to be paying a rate equal to such maximum Re-

course Rate. The price cap for bidding for capacity under the ROFR provisions in

Section 23 of the GT&C is the maximum Recourse Rate.

15.5. Capacity Release – The release of capacity under an FT Agreement is capped at the

maximum Recourse Rate, except for releases where no such rate cap applies; pro-

vided, however, the Negotiated Rate Shipper will continue to be obligated to pay

Transporter any difference by which the revenue due under the FT Agreement exceeds

the revenue received from the Replacement Shipper. Transporter and a Negotiated

Rate Shipper may agree upon payment obligations and crediting mechanisms, which

vary from or are different from those set forth in Transporter’s capacity release

provisions in Section 22 of the GT&C.