Firm Transaction Awards Detail - MountainWest Overthrust Pipeline

Terms / Notes

NEGOTIATED RATE PARAMETERS
During the term of this service agreement, Shipper shall pay a negotiated rate consisting of a monthly Fixed Negotiated Reservation Amount and a Monthly Sharing Amount, as each are described below (together, the “Negotiated Reservation Rate”). In addition to the Negotiated Reservation Rate, Shipper shall be responsible for the MWOP Fuel Gas Reimbursement Percentage (“FGRP”) and shall pay the commodity rates and all applicable surcharges set forth in Overthrust’s FERC Gas Tariff for firm transportation service to Shipper under the service agreement as approved by FERC. The FGRP, commodity rates, and applicable surcharges are subject to change from time to time as approved by the FERC.
Fixed Negotiated Reservation Amount: For each month of the term of this service agreement, in lieu of the applicable maximum reservation recourse rate, Shipper shall pay a fixed negotiated reservation rate of $0.24800 per dekatherm per month (“Dth/m”) multiplied by the then applicable Reserved Daily Capacity for such month (the “Fixed Negotiated Reservation Amount”).
Monthly Sharing Amount: On each day during the term of this service agreement, MWOP will calculate the Net Daily Spread (as defined below). The Net Daily Spread will then be multiplied by Shipper’s delivered quantity under the service agreement on each day to determine the “Daily Amount.” For each day within the month that results in a positive Daily Amount (i.e., above zero (0)), MWOP will multiply the Daily Amount by seventy-five hundredths (0.75); the product of such calculation is the “Daily Sharing Amount”. The sum of the Daily Sharing Amount(s) for each month shall be the “Monthly Sharing Amount.”
The “Net Daily Spread” is defined as the difference remaining after the following calculation for each day within the month:
a.
The daily index price for one of the following: (1) Kern River Opal price, as published by Platts Gas Daily, if the delivery location is located west of the Rock Springs East OAC Segment; or (2) the White River Hub price, as published by Platts Gas Daily, if the delivery location is located east of the Rock Springs East OAC Segment and
b.
Minus the daily index price for one of the following: (1) the White River Hub price, as published by Platts Gas Daily, if the receipt location is located east of the Rock Springs East OAC Segment; or (2) Kern River Opal price, as published by Platts Gas Daily, if the receipt location is located west of the Rock Springs East OAC Segment and
c.
Minus the sum of the following: (i) the applicable FGRP valued daily at the applicable receipt pricing location identified in subsections (b)(1) or (b)(2) immediately above; (ii) the fixed negotiated reservation rate stated above of $0.24800 divided by the
number of days in the applicable month; (iii) the applicable commodity rate; (iv) the ACA rate; and (v) an additional factor of $0.01.