Nautilus Pipeline Company, LLC

Original Volume No. 1

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Effective Date: 04/05/2010, Docket: RP10-475-000, Status: Effective

Original Sheet No. 223 Original Sheet No. 223

GENERAL TERMS AND CONDITIONS

40. NEGOTIATED RATES

40.1 PRECONDITIONS TO NEGOTIATED RATES

Rates (including but not limited to Transporter Use Gas) to be

charged by Transporter for service to any Shipper under Rate

Schedule FTS, FTS-2, FT-3, PSH or ITS may deviate in either form

or level or both from the applicable maximum and/or minimum rate

level in this Tariff, subject to the following provisions:

(a) Transporter and Shipper have executed a valid Service

Agreement containing therein or in a related agreement a

specific mutual understanding that Negotiated Rate(s) or a

Negotiated Rate Formula will apply to service for that

Shipper;

(b) At the time of execution of the Service Agreement (or the

amendment to a Service Agreement), which first provides for

the applicability to Shipper of the Negotiated Rate(s) or

Negotiated Rate Formula, service was available pursuant to

the terms and conditions (not modified by this Section 40)

of Rate Schedule FTS, FTS-2, FT-3, PSH or ITS of this

Tariff, as applicable;

(c) Transporter may only offer or accept offers for service

under this Section 40 if and to the extent service is

available at the Recourse Rate;

(d) Transporter will not negotiate terms and conditions of

service under this Section 40; and

(e) No later than the Business Day on which Transporter

commences service at such Negotiated Rate(s) or Negotiated

Rate Formula (or if the Day on which Transporter commences

service is not a Business Day, then no later than the next

Business Day after Transporter commences service),

Transporter will file a tariff sheet advising the Commission

of such Negotiated Rate or Negotiated Rate Formula, stating

the name of Shipper, the type of service, the primary

Point(s) of Receipt and Point(s) of Delivery applicable to

the service, the volume of the Gas to be transported, any

other charges, and specifying either: (i) the specific

Negotiated Rate included in such Service Agreement; or (ii)

the Negotiated Rate Formula included in such Service

Agreement with sufficient specificity such that the rate in

effect from time to time can be readily