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. 223 Third Revised Sheet No. 223

Superseding: Second Revised Sheet No. 223







4.18 Negotiated Rate Authority


(a) Authority and Conditions. Notwithstanding anything to the

contrary contained in this Tariff, including the rate

schedules contained herein, Transporter and Shipper may agree

to a rate or rates to be charged for service pursuant to any

rate schedule contained in this Tariff (including rates

derived from a formula) that may vary in form or level from

the maximum-to-minimum ranges set forth on Statement of Rates

of this Tariff ("Negotiated Rate"). This provision does not

allow Transporter and Shipper to negotiate terms and

conditions of service.


(i) Transporter's maximum applicable rates (plus all

applicable surcharges) for service under any such rate

schedule are available as recourse rates for any

Shipper that elects not to negotiate a Negotiated



(ii) Negotiated Rates shall be mutually agreed to and set

forth in writing.


(iii) Transporter and Shipper may agree to a Negotiated Rate

for the entire term of a TSA, or may agree to a

Negotiated Rate for some portion of the term of a TSA.

Transporter and Shipper may agree to apply the

Negotiated Rate to all or a portion of capacity under

Shipper's TSA.


(iv) During the period a Negotiated Rate is in place, the

Negotiated Rate shall govern and apply to

Transporter's service under the TSA and the otherwise

applicable rate, rate component, charge or credit

shall not apply or be available to the Shipper. Only

those rates, components, charges or credits which are

superseded by a Negotiated Rate shall be ineffective

during the period that the Negotiated Rate is

effective; all other rates, rate components, charges,

or credits prescribed, required, established, or

imposed by this Tariff shall remain in effect. At the

end of the period during which Negotiated Rates are in

effect, the otherwise applicable Tariff rates or

charges shall govern any service provided to Shipper.