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. 115 Original Sheet No. 115 : Pending

RATE SCHEDULE FTS-G

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8. INSUFFICIENT SUPPLY PENALTY

(a) If Natural becomes aware that an Insufficient Supply

Situation exists under which Shipper's supply at the Receipt Points

applicable to Shipper's FTS-G Agreement is less than the volume of

gas Shipper is taking at the Delivery Points applicable to

Shipper's FTS-G Agreement, Natural shall promptly notify Shipper of

such situation and inform Shipper that it may be subject to the

Insufficient Supply Penalty if corrective action is not taken. Such

notification will be given when Natural becomes aware that an

Insufficient Supply Situation exists or will exist because it: (a)

is unable to confirm Shipper's nominations, or (b) otherwise

becomes aware (i) that gas is not being delivered to Natural for

Shipper's account or (ii) that Shipper is taking more gas at its

Delivery Point(s) than has been nominated. Natural shall make such

notification by telephone, telefax, or any other method mutually

agreeable to Natural and Shipper. Such corrective action would be

either a reduction in takes by Shipper at the Delivery Point(s) or

an increase in gas tendered to Natural at the Receipt Point(s)

available under the FTS-G Agreement.

(b) If Shipper fails to correct the Insufficient Supply

Situation by the end of the next day after notice by Natural,

Natural shall assess Shipper and Shipper shall pay Natural an

Insufficient Supply Penalty for all gas taken thereafter in excess

of the volumes received during the period of the temporary loss,

interruption and/or shortage of supply at Shipper's Receipt

Point(s). The Insufficient Supply Penalty shall be a unit rate

multiplied by the discrepancy in volumes experienced during the

Insufficient Supply Situation. The unit rate shall equal the sum of

(1) the highest gas price actually assessed by Natural that month

under the cashout provision of the General Terms and Conditions of

this Tariff, plus (2) $15 per Dth during a Critical Time or $5.00

per Dth at any other time. In addition, volumes taken shall be

subject to all other charges applicable under this Rate Schedule

FTS-G; provided that the same volumes taken shall not be subject to

the other Balancing Service Charges and penalties under Rate

Schedule FTS nor shall such volumes be considered when determining

the monthly imbalance. There shall be a zero (0) tolerance level

and no correction period in determining volumes subject to the

Insufficient Supply Penalty.

be waived when revised nominations are required to rectify the

Insufficient Supply Situation.