Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 51 Original Sheet No. 51 : Pending

RATE SCHEDULE FFTS

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(1) The NB option may be requested as part of the

request for service under Section 3 of this Rate Schedule FFTS or by

mutual agreement (Natural's agreement shall not be unreasonably

withheld and any decision to withhold must be based on operating

reasons) provided, however, that the election of the NB option must

be for a minimum of one year or the remaining term of the FFTS

Agreement, whichever is less; and provided further, that the NB

option must be effective on the first day of a month unless otherwise

mutually agreed. Natural shall provide a written explanation of the

operational basis for rejecting any request to add the NB option to

an existing Agreement.

(2) The primary path under the FFTS Agreement

must be such that the NSS storage point would be treated as in-the

path under Section 5.6 of the General Terms and Conditions of this

Tariff or, where a Third Party Storage Point is being utilized, such

point must be within the primary path under the FFTS-NB Agreement.

(3) Any Third Party Storage Point shall be

available for service under this option only to the extent the

operator of that point and Natural enter into a Storage Point Swing

Service Operating (SPSSO) agreement which defines how such operator

will accommodate Shipper swing volumes on a no-notice basis, how the

operator is to make the corresponding operational physical changes,

the limitations on the level of swings to be accommodated and the

consequences if such levels are exceeded or operational changes are

not made. It is the intent that such an agreement provide Natural

with the ability to call upon such third party storage (within the

limits defined in the agreement) reasonably comparable to that which

Natural exercises with respect to its own storage fields, which may

include short-term notice arrangements with the operator. The SPSSO

agreement must specify a predetermined allocation methodology and

shall specify the extent to which and the conditions under which

Shippers shall be kept whole because the operator is agreeing to take

the swing. Because the third party storage provider under an SPSSO

agreement will be providing swing service, Natural shall not be

responsible (as it might under an ordinary operational balancing

agreement) for swing within the agreed limits applicable to such

Third Party Storage Point. If Natural rejects any request that NB

service be provided utilizing a Third Party Storage Point, Natural

shall make such rejection in writing and set out the reasons for the

rejection.