Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 06/25/2001, Docket: RP01-429-000, Status: Effective

Thirteenth Revised Sheet No. 96 Thirteenth Revised Sheet No. 96 : Effective

Superseding: Twelfth Revised Sheet No. 96

31. DISCOUNTING

From time to time Shipper and Transporter may agree in writing on

a level of discount of the otherwise applicable rates and

charges in addition to a basic discount from the stated maximum

rates. For example, Transwestern may provide a specific

discounted rate:

(1) to certain specified quantities under the Service Agreement;

(2) if specified quantity levels are actually achieved or with

respect to quantities below a specified level;

(3) to production reserves committed by the Shipper;

(4) during specified time periods;

(5) to points of receipt, points of delivery, supply areas,

transportation paths or defined geographical areas; or

(6) in a specified relationship to the quantities actually

transported (i.e., that the rates shall be adjusted in a

specified relationship to quantities actually transported).

(7) to provide that if one rate component which was equal to or

within the applicable maximum and minimum rate at the time

the discount agreement was executed subsequently exceeds the

applicable maximum rate or is below the applicable minimum

rate due to a change in Transwestern's maximum rates and/or

minimum rates, so that such rate component must be adjusted

downward or upward to equal the new applicable maximum or

minimum rate, then other rate components may be adjusted

upward or downward to achieve the agreed-upon overall rate,

so long as none of the resulting rate components exceed the

maximum rate or are below the minimum rate applicable to the

rate component. Such changes to rate components shall be

applied prospectively, commencing with the date a Commission

order accepts revised tariff sheets. However, nothing

contained herein shall be construed to alter a refund

obligation under applicable law for any period during which

rates which had been charged under a discount agreement

exceeded rates which ultimately are found to be just and

reasonable.

In all circumstances the discounted rate shall be between the

maximum rate and the minimum rate applicable to the service

provided.