Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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

Original Sheet No. 278 Original Sheet No. 278 : Pending

GENERAL TERMS AND CONDITIONS

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1.14 NEGOTIATED RATE

The term "Negotiated Rate" shall mean a rate provision

under which Natural and Shipper have agreed on the amount to be charged

for the service under Rate Schedule FTS, FFTS, FTS-G, ITS, IBS, BESS,

DSS, NSS, FRSS, PALS or LPS which results in a rate where, for all or a

portion of the contract term, one or more of the individual components of

such rate exceeds or may exceed the applicable maximum rate or is less

than or may be less than the applicable minimum rate. Any Agreement

entered into after the effective date of this subsection which provides

for a rate under Rate Schedule FTS, FFTS, FTS-G, ITS, IBS, BESS, DSS,

NSS, FRSS, PALS or LPS other than the applicable maximum rate shall

contain a provision setting out the mutual agreement of the parties,

consistent with Commission policy, as to whether the pricing terms

represent a discounted rate or a Negotiated Rate.

1.15 NEGOTIATED RATE FORMULA

The term "Negotiated Rate Formula" shall mean a rate

formula provision which Natural and Shipper have agreed will be applied

to service under Rate Schedule FTS, FFTS, FTS-G, ITS, IBS, BESS, DSS,

NSS, FRSS, PALS or LPS which results in a rate where, for all or a

portion of the contract term, one or more of the individual components of

such rate exceeds or may exceed the applicable maximum rate or is less

than or may be less than the applicable minimum rate. Any Agreement

entered into after the effective date of this subsection which provides

for a rate under Rate Schedule FTS, FFTS, FTS-G, ITS, IBS, BESS, DSS,

NSS, FRSS, PALS or LPS other than the applicable maximum rate shall

contain a provision setting out the mutual agreement of the parties,

consistent with Commission policy, as to whether the pricing terms

represent a discounted rate or a rate pursuant to a Negotiated Rate

Formula.

1.16 OPERATIONAL BALANCING AGREEMENT ("OBA")

An OBA is a contract between two parties which specifies

the procedures to manage operating variances at an interconnect.

1.17 RECEIPT POINT

The term "Receipt Point" shall mean any point at which

gas is tendered by or for the account of Shipper to Natural for

transportation or storage, as specified in an Agreement or as

applicable to service under such Agreement by operation of this Tariff.