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.08 First Revised Sheet No. 35B.08

Superseding: Original Sheet No. 35B.08

 

FOOTNOTES APPLICABLE TO SHEET NO. 35B.02

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5/ Con't

 

Applicable Maximum Rates, Charges and Surcharges. In addition to the Negotiated Reservation Rates, and unless otherwise expressly provided in this Agreement

or agreed to in writing by Natural, Shipper shall also pay Natural all other applicable maximum rates, charges, surcharges and penalties of any nature set

forth in Natural's FERC Gas Tariff, as may be revised from time to time, including without limitation all applicable maximum: (i) Fuel and Gas Lost and

Unaccounted For charges; (ii) authorized and unauthorized overrun charges; (iii) reservation charges and surcharges; (iv) commodity rates, charges and

surcharges; (v) ACA surcharges; and (vi) gathering charges, offshore charges and lateral line charges. Notwithstanding the foregoing sentence, to the extent

that any such additional maximum rate, charge, surcharge or penalty is derived from the applicable base reservation rate set forth in Natural's FERC Gas

Tariff, then Natural shall derive such additional rate, charge, surcharge or penalty utilizing the greater of: (i) the applicable maximum base reservation

rate set forth in Natural's FERC Gas Tariff, as may be revised from time to time; and (ii) the Negotiated Monthly Base Reservation Rate.

 

Reservation Charge True Up. If the Blended Negotiated Reservation Rate as defined in footnote 2 above, derived using the Index Rates calculated in footnotes

3(1), 3(2), 3(3) and 3(4) times the relevant path MDQs, results in a rate that is less than the weighted average of the Floor Rates defined in footnotes 3(1),

3(2), 3(3) and 3(4) (the "Blended Contract Floor Rate"), Natural will maintain an adjustment account in the amount of the difference between that Blended

Negotiated Reservation Rate based on the Index Rates and the Blended Contract Floor Rate that was billed that month. Such amount will be applied against the

Blended Negotiated Reservation Rate billed in future months during the same Contract Year but only up to the total amount of the adjustment account, and only

to the extent that the Blended Negotiated Reservation Rate exceeds the Maximum Tariff Rate in such future month. In the event that the Index Rate for any

path is less than $0.00, the Index Rate for that path used to calculate that Blended Negotiated Rate will be $0.00.

 

If the Blended Negotiated Reservation Rate, as defined in footnote 2 above, results in a rate that is greater than the applicable Maximum Tariff Rate, Natural

will maintain an adjustment account in the amount of the difference between the Maximum Tariff Rate and the Blended Negotiated Reservation Rate that was

charged for that month. Such amount will be applied against the Blended Negotiated Reservation Rate billed in future months during the same Contract Year but

only up to the total amount of the adjustment account, and only to the extent that the Blended Negotiated Reservation Rate for that future month is less than

the Blended Contract Floor Rate.

 

Capacity Release. In the event that Shipper releases any capacity under the FTS Agreement, the Negotiated Reservation Rates shall remain in effect for all

service provided to Shipper under the FTS Agreement, to the extent that service under the FTS Agreement and any related capacity release replacement

agreements complies with all of the requirements applicable to the Negotiated Rates which are set forth herein. Shipper shall be billed the greater of the

Blended Negotiated Reservation Rate or the applicable maximum rates, charges, and surcharges set forth in Natural's FERC Gas Tariff for all such service

provided which does not comply with all requirements applicable to the Negotiated Reservation Rates. All capacity releases by Shipper under the FTS Agreement

shall be subject to all applicable capacity release requirements set forth in Natural's FERC Gas Tariff, including any and all requirements regarding the

rates which Shipper may charge to Replacement Shippers.