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. 225 Original Sheet No. 225

GENERAL TERMS AND CONDITIONS

(b) In allocating capacity among competing requests where one or

more request is at a Negotiated Rate(s) or Negotiated Rate

Formula, Transporter will consider, in assigning value to

such request(s), only reservation or demand charge revenue

or other revenue which is guaranteed to be received by

Transporter (i.e., through a minimum throughput condition or

minimum bill). For capacity evaluation purposes, the value

of any such request shall be capped by the value of the

maximum applicable reservation rate for such service over

the contract term bid.

40.3 ACCOUNTING FOR COSTS AND REVENUES

The allocation of costs to, and the recording of revenues from

service at Negotiated Rate(s) will follow Transporter's normal

practices associated with all of its services under this

Tariff. Transporter will maintain separate records of

Negotiated Rate and Negotiated Rate Formula transactions for

each billing period. These records shall include the volumes

transported, the billing determinants (contract MDTQ), the

rates charged and the revenue received associated with such

transactions. Transporter will separately identify such

transactions in Statements G, I and J (or their equivalent)

filed in any general rate proceeding.

40.4 EFFECT OF NEGOTIATED RATE

By agreeing to a Negotiated Rate(s) or Negotiated Rate

Formula, Shipper acknowledges that the otherwise generally

applicable Recourse Rate shall not apply or be available to

Shipper for service under the applicable Service Agreement

during the period for which the Negotiated Rate(s) or

Negotiated Rate Formula is effective, notwithstanding any

adjustment to such Recourse Rate or Negotiated Rate Formula

which may become effective during the period for which the

Negotiated Rate(s) or Negotiated Rate Formula is effective.

If, at any time during the period for which the Negotiated

Rate(s) or Negotiated Rate Formula is effective, Transporter

is collecting its effective Recourse Rate subject to refund

under Section 4 of the Natural Gas Act, Transporter shall have

no refund obligation to Shipper even if the final Recourse

Rate is reduced to a level below the Negotiated Rate(s) or

Negotiated Rate Formula.

40.5 CAPACITY RELEASE

The capacity release provisions contained within this Tariff

shall not apply to a Shipper receiving firm transportation

service with a Negotiated Rate(s) or Negotiated Rate Formula

that does not contain a reservation rate.