Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 11/01/1996, Docket: RP95-271-007, Status: Effective

1st Revised Sheet No. 91D 1st Revised Sheet No. 91D : Effective

Superseding: Original Sheet No. 91D

GENERAL TERMS AND CONDITIONS

(Continued)

 

H. Effect of Challenges to the TCR II Filing:

 

Current Firm Shippers waive the right to challenge prudence

of the TCR II Amounts. Current Firm Shippers waive the right

to challenge the eligibility of Transporter's TCR II Amounts

for all such costs meeting the following standards: eligible

costs are defined as all costs specified as eligible for

recovery under the standards of Order Nos. 500, et al. and

Order Nos. 528, et al., and cases interpreting and applying

such standards, and shall include transportation credits,

transportation discounts and other non-cash consideration,

the full amount of the consideration provided under any

settlement which resolves a take-or-pay claim or claims also

resolved by such settlement, and payments for royalty and

overriding royalty claims and severance taxes, where

Transwestern's take-or-pay settlement with a producer

requires Transwestern to pay royalty claims and/or severance

taxes otherwise payable by the producer; however, in no event

shall eligible costs be deemed to include attorneys' fees,

expert fees, arbitration costs or court costs incurred by

Transwestern in effectuating any settlement or obtaining any

approval thereof. If any TCR II Amounts are ultimately held

to be ineligible for recovery, Transporter shall remove the

subject amounts from its TCR II Reservation Surcharge and

adjust the TCR II Reservation Surcharge accordingly and/or

refund or credit such amounts to Shippers that paid for the

TCR II Amounts deemed ineligible.