Trunkline Gas Company

First Revised Volume No. 1

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Effective Date: 01/14/1999, Docket: RP99-182-000, Status: Effective

Original Sheet No. 52R Original Sheet No. 52R : Effective






3.9 Negotiated Rates


Shipper and Trunkline may agree, on a prospective basis, to a

Negotiated Rate with respect to the charges identified in Sections

3.1 and 3.2 herein which may be less than, equal to or greater

than the Maximum Rate; shall not be less than the Minimum Rate;

may be based on a rate design other than straight fixed variable;

and may include a minimum quantity. Such Negotiated Rate shall be

set forth on Exhibit D of the executed Service Agreement and on

the currently effective Tariff Sheet No. 19. The Maximum Rate

shall be available to any Shipper that does not choose a

Negotiated Rate.


Shippers paying a Negotiated Rate which exceeds the Maximum Rate

will be considered to be paying the Maximum Rate for purposes of

scheduling, curtailment and interruption, calculating the economic

value of a request for unsubscribed firm capacity, and matching

competing bids for the right of first refusal. Replacement

Shippers may not bid or pay a rate greater than the Maximum Rate

and are not eligible for Negotiated Rates.


In the event that capacity subject to a Negotiated Rate which is

based on a rate design other than straight fixed variable is

released, Shipper and Trunkline may agree on billing adjustments

to the Releasing Shipper that may vary from or are in addition to

those set forth in Section 9.9 of the General Terms and Conditions

in order to establish the basis of accounting for revenues from a

Replacement Shipper as a means of preserving the economic bases of

the Negotiated Rate. Such payment obligation and crediting

mechanism for capacity release shall be set forth on Exhibit D of

the executed Service Agreement. Nothing in this Section 3.9 shall

authorize Trunkline or Shipper to negotiate terms and conditions

of service.