El Paso Natural Gas Company

Second Revised Volume No. 1A

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Effective Date: 04/01/2010, Docket: RP10-454-001, Status: Effective

Third Revised Sheet No. 221 Third Revised Sheet No. 221

Superseding: Second Revised Sheet No. 221






4.17 Discounted Rates

(a) Transporter, upon mutual agreement with Shipper, may from time

to time and at any time agree to adjust any or all of the

rates applicable to any individual TSA on a non-discriminatory

basis; provided, however, that such adjusted rate(s) shall not

exceed the applicable maximum rate(s) nor shall they be less

than the minimum rate(s) set forth on Statement of Rates for

the applicable Rate Schedule. Discounts granted pursuant to

this Section 4.17 will not constitute a material deviation

from Transporter's Form of Service Agreement.


Transporter and Shipper may agree that a specified discounted

rate will apply under the following conditions:

1) to specified quantities under the TSA;


2) to specified quantities achieving or not exceeding a

certain level;


3) in a specified relationship to quantities actually



4) to specified quantities during specified periods of time

or during specified periods of the Year;


5) to specified quantities at specific Receipt or Delivery

Points or other geographical locations;


6) to production or reserves committed or dedicated to



7) that a specified discounted rate is based on 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 (such discounted

rate may be based upon the differential between published

prices or arrived at by formula). Any agreement

containing such discounted rate shall specify the rate

component(s) to be discounted (i.e., reservation charge

or usage charge or both) and any formula will provide a

reservation rate per unit of contract demand. To the

extent the firm reservation charge is discounted, the

index price differential rate formula shall be calculated

to state a rate per MDQ. Furthermore, such discount

shall not change the underlying rate design or include

any minimum bill or minimum take provision that has the

effect of guaranteeing revenue;