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. 218 Original Sheet No. 218 : Pending

RATE SCHEDULE PALS

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(b) In the event that a Shipper fails to comply with

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

Natural shall notify Shipper and the PALS RO shall be subject to

termination in accordance with the terms of such notice. The

provisions of Sections 9.4(a) and 9.4(b) shall then apply.

9.4 (a) In the event that Shipper still has gas parked at

the end of its contract term or because of failure to comply with

the notice pursuant to Sections 3 and 9.2 above, the remaining

balance shall be forfeited to Natural, free and clear of any

adverse claims.

(b) Conversely, if the Shipper has not redelivered gas

which was loaned by Natural by the end of its contract term or

within the timeframe specified in the notice in Sections 3 and 9.3

above, the Shipper must purchase the unreturned balance at 150% of

the average Weekly Index Prices (WIPs) as determined in Section

13.3 of the General Terms and Conditions of this Tariff during the

term of the loan. In the event that the information used to

determine the WIPs for the term of the loan is not available, then

the Shipper must purchase the unreturned balance at 150% of the

Average Monthly Index Price (AMIP) as determined in Section 13.3 of

the General Terms and Conditions of this Tariff. If Critical Time

or Operational Flow Orders are in effect on the date Shipper is

required to comply with the notice, Shipper shall be subject to the

highest charges set forth in Sections 12.3 and 12.4 of the General

Terms and Conditions of this Tariff.

9.5 In circumstances where Shipper is unable to eliminate

its PALS RO balance because Natural is unable to accept the PALS RO

nomination, Shipper shall take any action to reduce the balance

which Natural can accommodate and Shipper shall be granted

additional time to eliminate its PALS RO balance corresponding to

the time Natural was unable to accept the PALS RO nomination.

Shipper shall not incur any penalty or daily fees as to that

portion of the balance resulting from Natural's inability to accept

the PALS RO nomination. Such extension shall only apply in

instances where a Shipper's inability to eliminate the PALS RO

balance is attributable to Natural's inability to accept and

confirm PALS RO nominations.