Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 07/01/1999, Docket: RP99-311-000, Status: Effective

Original Sheet No. 682 Original Sheet No. 682 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

28. DISCOUNT TERMS

 

 

 

In the event that Pipeline agrees to discount its maximum rates under Rate

Schedules CDS, FT-1, SCT, PTI, IT-1, LLFT, LLIT, VKFT, VKIT, SS-1, FSS-1 and/or

ISS-1, Pipeline and Customer may agree to the types of discounts specified herein

without such discounts constituting a material deviation from Pipeline?s pro forma

service agreement. Pipeline and Customer may agree that a specified discounted

rate will apply: (i) only to specified quantities under the service agreement;

(ii) only if specified quantities are achieved or only with respect to quantities

below a specified level; (iii) only during specified periods of the year or for a

specifically defined period; (iv) only to specified points, combination of

points, zones, markets, transportation paths or other defined geographic area(s);

(v) only to reserves committed by Customer; and/or (vi) only in a specified

relationship to the quantities actually delivered (i.e., that the reservation

charge will be adjusted in a specified relationship to quantities actually

delivered). Notwithstanding the foregoing, no discounted rate shall be less than

the applicable minimum rates.