Colorado Interstate Gas Company

First Revised Volume No. 1

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Effective Date: 06/01/2010, Docket: RP10-689-000, Status: Effective

Eighth Revised Sheet No. 276 Eighth Revised Sheet No. 276

Superseding: Seventh Revised Sheet No. 276





4.16 Discounting. (continued)


(a) only to certain specified service entitlements under the


(b) only if specified quantity levels are actually achieved under

the Agreement (with higher rates, charges, and fees applicable

to all quantities above those levels, or to all quantities under

the Agreement if the specified levels are not achieved);

(c) only to production reserves committed by the Shipper;

(d) only during specified time periods;

(e) only to specified Point(s) of Receipt, Point(s) of Delivery,

mainline area segments, supply areas, Transportation routes, or

defined geographical areas; or

(f) in a specified relationship to the quantities actually Delivered

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

relationship to quantities actually Delivered); and/or

(g) to a formula including, but not limited to, published index

prices for specific receipt and/or delivery points or other

agreed-upon published pricing reference points for price

determination (such discounted rate may be based upon the

differential between published index prices or arrived at by

formula). Such discounted rate:

(1) shall not change the underlying rate design;

(2) shall not include any minimum bill or minimum take provision

that has the effect of guaranteeing revenue;

(3) shall define the rate component to be discounted.

(g) to increasing (or decreasing) a discounted rate for service

under one rate schedule to make up for a decrease (or increase)

in the rate for a separate service provided under another rate



In addition, the discount language of the Agreement may include a

provision that if one rate component which 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 Transporter's 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, so long as none of the resulting rate

components exceed 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 provisions. 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 which ultimately are found to be just and