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. 217 Original Sheet No. 217 : Pending

RATE SCHEDULE PALS

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8. NOMINATIONS

It shall be Shipper's sole responsibility to provide

Natural with daily nominations of the quantity of gas to be

received or delivered at the Park or Loan point(s) under the

applicable PALS RO Agreement. It shall be Shipper's responsibility

to cause gas to be delivered to Natural and to cause gas to be

received from Natural in accordance with the PALS RO. Nominations

shall be subject to confirmation and scheduling in accordance with

the General Terms and Conditions of this Tariff.

9. MANDATORY BALANCING

9.1 Mandatory Balancing shall apply in the following

instances: (a) at the end of the term specified in any applicable

PALS Agreement and PALS RO; (b) where the Shipper fails to comply

either with the requirements of Natural's notice referenced in

Sections 3 and 9.3(b) hereof; or (c) where Shipper fails to comply

with the schedule of activities set forth in the applicable PALS RO

and the deviation has not been agreed to and confirmed by Natural.

9.2 Natural shall require Mandatory Balancing effective the

next day prior to declaring Critical Time or issuing Operational

Flow Orders under Section 23, Operational Control, of the General

Terms and Conditions of this Tariff, if Natural reasonably

determines that doing so would facilitate system operations and

minimize the frequency and severity of Critical Time or Operational

Flow Orders in the affected region(s).

9.3 (a) In the event that Natural notifies a PALS Shipper

under Section 3 hereof, such notice shall specify the parked

balance to be removed or the loaned balance to be returned, up to

the full MAQ, and the timeframe within which the balance must be

effectuated, but in no event shall the specified timeframe be less

than three (3) days (in one-third daily increments) from the date

of notification. Natural may allow additional time for contract

balancing when operational conditions permit. Notification shall

first be provided by telephone and then by facsimile, by e-mail or

in writing. General notices will be posted on the Informational

Postings portion of Natural's Interactive Website. In instances

when notification is required during times other than normal

business hours, Natural will provide such notification by

telephone. To the extent Shipper fails to comply with such notice,

the PALS RO shall terminate and the provisions of Section 9.4 shall

apply.