GENERAL TERMS AND CONDITIONS
(CONTINUED)
36. DISCOUNT POLICY
Transporter may, but is not obligated to, offer service at rates
less than the maximum Recourse Rates, but Transporter may agree
to provide service to Shipper at a specified discount, in which
case such discount shall not be provided at a rate lower than the
variable costs included in Transporter's currently effective
usage rate. For example, Transporter and Shipper may agree that
a specified discounted rate will apply: (a) only to certain
specified firm service entitlements; (b) only if specified
quantity levels are actually achieved (with higher rates,
charges, and fees applicable to all quantities above those
levels, or to all quantities if the specified levels are not
achieved); (c) only during specified time periods; or (d) only to
specified Receipt Points, Delivery Points, Transportation paths,
or defined geographical areas; provided, however; that any such
discounted rates set forth above shall be between the minimum and
maximum rates applicable to the Service provided.
If Transporter has agreed to a discount with a Shipper receiving
Transportation Service under an Agreement pursuant to Part 284 of
the Commission's Regulations and the discount is limited to
specific Point(s) of Receipt or Delivery or both, the Shipper may
request that such discount apply to Transportation Service under
said Agreement at a different Point of Receipt or Delivery
accessible under said Agreement at which Transporter and the
Shipper have not specifically agreed to the discounted rate.
There is a rebuttable presumption that such discount shall apply
at the requested point if Transporter at the time of the request
is granting discounts to other similarly situated Shipper(s)
receiving Transportation Service utilizing that point. However,
Transporter can rebut this presumption by demonstrating that the
proposed service to the Shipper is not similarly situated to the
service receiving a discount at the requested point. Regardless
of the discount granted by Transporter to any similarly situated
Shipper at such requested point, if pursuant to this paragraph
Shipper is granted a discount for Transportation at the requested
point, Shipper shall pay the higher of its contractual discount
rate or the discount rate provided to another Shipper utilizing
the requested point.
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