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.04 First Revised Sheet No. 35B.04

Superseding: Original Sheet No. 35B.04

FOOTNOTES APPLICABLE TO SHEET NO. 35B.02

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

(3) Texok Service (Con't)

(b)Negotiated Reservation Rate Credit. In the event that the Texok Negotiated Reservation Rate in any month exceeds $0.04/Dth, then Shipper shall receive

for that month a partial reservation rate credit from Natural for Shipper's twenty thousand (20,000) Dth/d of firm capacity from the Texok Receipt Point to the

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

(i) To the extent that the relevant Texok Negotiated Reservation Rate is greater than $0.04 and less than or equal to $0.06, Shipper's credit shall be

one hundred percent (100%) of the amount by which such rate exceeds $0.04/Dth.

(ii) To the extent that the relevant Texok Negotiated Reservation Rate exceeds $0.06/Dth, Shipper's credit shall be the amount of the credit determined

pursuant to Footnote 3(3)(b)(i) above, as well as thirty percent (30%) of the amount by which such rate exceeds $0.06/Dth.

(c)Service MDQ. Shipper's MDQ for the Texok Service shall be 20,000 Dth/d.

(4) South Texas Service.

(a)South Texas Negotiated Reservation Rate. For firm transportation service provided to Shipper from either of the South Texas Receipt Points to either the

Florida Gas Delivery Point or the Sabine Delivery Point (the "South Texas Service"), the South Texas Negotiated Reservation Rate shall be the greater of: (a)

$0.0617/Dth (the "South Texas Floor Rate"), or (b) the South Texas 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 South Texas Zone Index (NGPL South Texas Index); minus (iv)

Minimum Commodity Rate (MCR) applicable to the South Texas to Louisiana primary path; minus (v) Fuel/GLU; minus (vi) the ACA Surcharge. "Fuel/GLU" in this

calculation is defined as (a) the NGPL South Texas Index multiplied by (b) the reciprocal of 1 minus the South Texas to Louisiana fuel/GLU percentage, minus (c)

the NGPL South Texas Index.

(b)Negotiated Reservation Rate Credit. In the event that the South Texas Negotiated Reservation Rate in any month exceeds $0.0617/Dth, then Shipper shall

receive for that month a partial reservation rate credit from Natural for Shipper's thirty thousand (30,000) Dth/d of firm capacity from the South Texas Receipt

Points to the Florida Gas and Sabine Delivery Point. The amount of such credit to Shipper shall be determined as follows:

(i) To the extent that the relevant South Texas Negotiated Reservation Rate is greater than $0.0617 and less than or equal to $0.0817, Shipper's credit

shall be one hundred percent (100%) of the amount by which such rate exceeds $0.0617/Dth.

(ii) To the extent that the relevant South Texas Negotiated Reservation Rate exceeds $0.0817/Dth, Shipper's credit shall be the amount of the credit

determined pursuant to Footnote 3(4)(b)(i) above, as well as thirty percent (30%) of the amount by which such rate exceeds $0.0817/Dth.

(c)Service MDQ. Shipper's MDQ for the South Texas Service shall be 30,000 Dth/d.