Panhandle Eastern Pipe Line Company, LP


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Effective Date: 09/01/2004, Docket: RP04-426-000, Status: Effective

First Revised Sheet No. 571 First Revised Sheet No. 571 : Effective

Superseding: Original Sheet No. 571






From time to time Panhandle and Shipper may agree in writing,

on a level of discount of the otherwise applicable rates and charges

hereunder, pursuant to the effective applicable provisions of Rate

Schedule IOS and subject to the Regulations and Orders of the

Commission. For example, Panhandle and Shipper may agree that a

specified discounted rate shall apply: (a) only to certain

Quantities under this Agreement; (b) only if specified Quantity

levels are actually achieved or only with respect to Quantities below

a specified level; (c) only during specified time periods; (d) in a

specified relationship to the Quantities actually injected, withdrawn

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

relationship to Quantities actually injected, withdrawn or stored);

or (e) based on published index prices for specific receipt or

delivery points or other agreed upon pricing reference points for

price determination (Such discounted rate may be based on the

published index price point differential or arrived at by formula.

Any service agreement containing an index based discount will

identify what rate component is discounted. To the extent the firm

capacity charge or deliverability charge is discounted, the index

price differential rate formula shall be calculated to state a rate

per unit of MSQ and/or MDWQ, as applicable.); provided, however, that

any such discounted rate set forth above shall be between the Maximum

Rate and Minimum Rate applicable to the service provided under this

Agreement. In addition, the discount 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 Panhandle'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 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. Any

discount(s) shall be effective only on a prospective basis and as

specified in the written agreement between Panhandle and Shipper.


From time to time Panhandle and Shipper may agree to a

Negotiated Rate for a specified term for service hereunder.

Provisions governing such Negotiated Rate and term shall be set forth

on Exhibit A hereto.





3.1 All volumes delivered to Shipper hereunder shall be

delivered at the IOS Point, as described in Rate Schedule IOS.