Mojave Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Third Revised Sheet No. 217 Third Revised Sheet No. 217

Superseding: Second Revised Sheet No. 217




4. Requests for Service (Continued)


4.11 Off-system Capacity.

(a) Transporter may enter into transportation and/or storage

agreements with upstream and downstream entities, including

other interstate and intrastate pipelines and storage providers

("off-system capacity"). In the event Transporter acquires

off-system capacity, Transporter will use such capacity for

operational reasons or to render service for its Shippers on

the acquired capacity, pursuant to Transporter's Tariff and

subject to Transporter's currently approved rates (including

any third party charges required to be paid pursuant to Section

4.11(b)) In the event the off-system capacity is subject to

renewal limitations, as specified in the third-party pipeline's

tariff and/or provided by FERC Regulations, Transporter will

indicate in its posting of firm unsubscribed capacity any

limitation to the extension rights that will apply as a result

of such limitations on the off-system capacity. For purposes

of transactions entered into subject to this section, the

"Shipper must hold title" requirement shall not be applicable

to the acquired capacity.


(b) Third Party Charges. If Transporter acquires off-system

capacity from a third party(s) pursuant to Section 4.11(a)

above and provides transportation and/or storage service for

the benefit of Shipper(s), such Shipper(s) may, on a not unduly

discriminatory basis, be required to pay Transporter, in

addition to any applicable rates and charges assessed pursuant

to Transporter's Tariff, the rates and charges Transporter is

obligated to pay such third party(s) for the off-system

capacity acquired on behalf of the shipper. Off-system

capacity charges incurred by Transporter shall be borne by the

Shipper(s) using the off-system capacity. Such charges may

include, but are not limited to, daily reservation and

commodity charges and applicable surcharges, fuel and power

charges or retention, compression fees, balancing or storage

fees, measurement fees, processing fees and/or facility charges

that are assessed by the third party. Unless otherwise

mutually agreed, such Third Party Charges shall be assessed by

Transporter to Shipper(s) in the same manner (fixed rate,

volumetric, etc.) the charges are assessed to Transporter and

set forth as separate items on the monthly invoices rendered to

Shipper. If capacity is acquired on behalf of multiple

shippers, any fees or charges not directly attributable to

reservation and/or usage charges will be allocated pro rata

among those shippers based on the contract quantity of each