Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP99-176-194, Status: Effective

First Revised Sheet No. 35B.03 First Revised Sheet No. 35B.03

Superseding: Original Sheet No. 35B.03

FOOTNOTES APPLICABLE TO SHEET NO. 35B.02

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3/ Negotiated Rates and Eligible Transportation Quantities. (Con't)

(2) Crosshaul Service.

(a)Crosshaul Negotiated Reservation Rate. For firm transportation service provided to Shipper from the Gage or El Paso Receipt Points to the Sabine

Delivery Point, (the "Crosshaul Service"), the Crosshaul Negotiated Reservation Rate shall be the greater of: (a) $0.1050/Dth (the "Crosshaul Floor Rate"), or

(b) the Crosshaul Index Rate, which shall equal: (i) the NYMEX Settlement Price on expiration day for the flow month contract; minus (ii) $0.05; minus (iii)

Inside FERC's Gas Market Monthly Report for the NGPL Midcontinent Zone Index (NGPL Midcontinent Index); minus (iv) the weighted average of the Minimum Commodity

Rate (MCR) applicable to the Amarillo Mainline to Louisiana and the Permian to Louisiana primary paths; minus (v) Fuel/GLU; minus (vi) the ACA Surcharge.

"Fuel/GLU" in this calculation is defined as (a) the NGPL Midcontinent Index, multiplied by (b) the reciprocal of 1 minus the Midcontinent to Louisiana fuel/GLU

percentage, minus (c) the NGPL Midcontinent Index.

(b)Negotiated Reservation Rate Credit. In the event that the Crosshaul Negotiated Reservation Rate in any month exceeds $0.1050/Dth, then Shipper shall

receive for that month a partial reservation rate credit from Natural for Shipper's twenty-five thousand (25,000) Dth/d of firm capacity from the Gage and El

Paso Receipt Points to the Sabine Delivery Point. The amount of such credit to Shipper shall be determined as follows:

(i) To the extent that the relevant Crosshaul Negotiated Reservation Rate is greater than $0.1050 and less than or equal to $0.1250, Shipper's credit

shall be one hundred percent (100%) of the amount by which such rate exceeds $0.1050/Dth.

(ii) To the extent that the relevant Crosshaul Negotiated Reservation Rate exceeds $0.1250/Dth, Shipper's credit shall be the amount of the credit

determined pursuant to Footnote 3(2)(b)(i) above, as well as thirty percent (30%) of the amount by which such rate exceeds $0.1250/Dth.

(c)Service MDQ. Shipper's MDQ for the Crosshaul Service shall be 25,000 Dth/d.

(3) Texok Service.

(a)Texok Negotiated Reservation Rate. For firm transportation service provided to Shipper from the Texok Receipt Point to the Sabine Delivery Point (the

"Texok Service"), the Texok Negotiated Reservation Rate shall be the greater of: (a) $0.04/Dth (the "Texok Floor Rate"), or (b) the Texok Index Rate, which

shall equal: (i) the NYMEX Settlement Price on expiration day for the flow month contract; minus (ii) $0.05; minus (iii) Inside FERC's Gas Market Monthly Report

for the NGPL Texok Zone Index (NGPL Texok Index); minus (iv) Minimum Commodity Rate (MCR) applicable to the Texok to Louisiana primary path; minus (v) Fuel/GLU;

minus (vi) the ACA Surcharge. "Fuel/GLU" in this calculation is defined as (a) the NGPL Texok Index multiplied by (b) the reciprocal of 1 minus the Texok to

Louisiana fuel/GLU percentage, minus (c) the NGPL Texok Index.