Questar Southern Trails Pipeline Company

Original Volume No. 1

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Effective Date: 06/01/2002, Docket: RP02-318-000, Status: Effective

Original Sheet No. 37 Original Sheet No. 37 : Effective




2.3 Conditions. Implementation of a negotiated rate

shall be subject to the following conditions:


(a) Southern Trails and Shipper have executed a

valid transportation service agreement to implement

negotiated rates.


(b) Shipper had access to service pursuant to

this FERC Gas Tariff at the rates set forth on the Statement

of Rates at the time of the execution of the transportation

service agreement implementing negotiated rates.


(c) Southern Trails has filed a tariff sheet

advising the Commission of such agreement. The numbered

tariff sheet will state the exact legal name of the Shipper,

the negotiated rate, other applicable charges, the receipt

and delivery points, the volume of gas to be transported and

the applicable rate schedule for service provided at a

negotiated rate. The tariff sheet will include a statement

affirming that the negotiated rate agreement does not

deviate in any material aspect from the applicable form of

service agreement or Southern Trails will file the agreement

pursuant to 154.112(b) of the Commission's Regulations.


2.4 Bidding for Firm Capacity. Southern Trails and

Shipper may negotiate and post for competitive bidding, a

rate that exceeds the applicable maximum reservation rate.

If competing bids under 6 of these General Terms and

Conditions reflect different rate forms, i.e., negotiated

rates vs. recourse rates, Southern Trails shall award the

capacity, or a portion thereof, using the evaluation

criteria of 6 of this tariff. The negotiated reservation

charge reflected in such evaluation criteria may not exceed

the maximum applicable recourse rate. Southern Trails will

calculate this value based only on the reservation charge or

similar guaranteed revenue stream.


2.5 Agreements Subject to the Right of First Refusal.

For purposes of 8 of these General Terms and Conditions,

the highest rate that a Shipper must match in order to

continue to receive service is the maximum rate set forth on

the Statement of Rates that is applicable to such service.

For purposes of evaluating bids under 6, the value of the

bid will be based only on the reservation charge or similar

guaranteed revenue stream.