Empire Pipeline, Inc.

Original Volume No. 1

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Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective

Original Sheet No. 19 Original Sheet No. 19



Firm Transportation Service




3. RATES (Cont'd.)


(f) that a specified discounted rate is based on 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. To the extent the firm

reservation charge is discounted, the index price

differential rate formula shall be calculated to state a

rate per maximum daily quantity. Furthermore, such discount

shall not change the underlying rate design to include any

minimum bill or minimum take provision that has the effect

of guaranteeing revenue;


(g) 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 or is less than the applicable minimum rate due to a

change in Transporter's maximum (minimum) rates so that

such rate component must be adjusted downward (upward) to

equal the new applicable maximum (minimum) rate, then other

rate components may be adjusted upward (downward) to achieve

the agreed overall rate, so long as none of the resulting

rate components exceed the maximum rate or are less than the

minimum rate applicable to that rate component. The

amendment may also provide for an adjustment to rate

components to achieve the over-all revenues attributable to

the agreed rates under the service agreement being amended

and other service agreements under the same or other rate

schedules, should changes in Transporter's maximum or

minimum rates increase or decrease the revenues attributable

to such other service agreement, so long as none of the

resulting rate components exceed the maximum rate or are

less that the minimum rates 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. Nothing contained herein

shall be construed to alter a refund obligation under

applicable law for any period during which rates that had

been charged under a discount agreement exceeded rates

which ultimately are found to be just and reasonable.