GENERAL TERMS AND CONDITIONS

(continued)


 


 


 

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 or is less than the applicable

minimum rate due to a change in Pipeline'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. 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.


 

Pipeline and Shipper may agree that a specified discounted rate will

apply under the following conditions:


 

(1) to specified quantities under Shipper's Service

Agreement(s);


 

(2) to specified quantities achieving or not exceeding a

certain level;


 

(3) in a specified relationship to quantities actually

transported;