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. 232 Original Sheet No. 232 : Pending

RATE SCHEDULE LPS

------------------

9. MANDATORY BALANCING

9.1 Mandatory Balancing under Section 9.3 hereof shall apply

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

any applicable LPS Agreement or LPS RO; (b) where the Shipper fails

to comply with the requirements of Natural's notice under Section 3

(b) hereof; or (c) where Shipper fails to comply with the schedule

of activities set forth in the applicable LPS RO, the deviation has

not been agreed to and confirmed by Natural and Natural has provided

the notice set out in section 9.2 of this Rate Schedule.

9.2 In the event that a Shipper fails to comply with the

schedule of activities set forth in the applicable LPS RO, Natural

shall notify Shipper and the LPS RO shall be subject to termination

in accordance with the terms of such notice.

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

the time any of the conditions specified in Section 9.1 hereof

apply, 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 at the time any of the conditions

specified in Section 9.1 hereof apply, 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.

This charge is in addition to any overrun charges applicable under

other provisions of this Rate Schedule. 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.