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. 287 Original Sheet No. 287 : Pending

GENERAL TERMS AND CONDITIONS

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(E) Contingencies, if any, which will be accepted in

open season bids.

(F) Any other bid requirements, conditions, criteria,

restrictions or parameters.

(v) In the Initial Open Season, all bids must be submitted in

the basic rate design then in effect on Natural's system and are

constrained by the applicable maximum and minimum rates. No bid with rates

in the form of a Negotiated Rate or Negotiated Rate Formula will be valid

in an Initial Open Season.

(vi) Natural shall establish a reserve price or reserve price

matrix in every Initial Open Season, consistent with Section 5.1(d)(5).

(vii) Unless otherwise specified in the posting, a bidder may

bid on all or any portion of the term for which the firm capacity is

available and on all or any portion of the capacity available. Natural may

only impose minimum volume or term requirements on bids for operational

reasons, such as maintaining pressure or sustaining the minimum level of

prudent facility operations on any affected portion(s) of its system.

(viii) Natural shall have the right to terminate an Initial Open

Season through a termination posting if there is a material error in the

Initial Open Season posting, which error shall be explained in the

termination posting. A bidder may withdraw a bid for a material error by

notifying Natural by the deadline for bids that the bid contains a material

error, which notification shall explain the material error.

(ix) All bids received during the open season period remain

binding on the bidder through the end of the open season unless withdrawn

by bidder. A bidder may withdraw its bid at any time during the open

season, utilizing the same medium through which a bid can be submitted. A

bidder which has withdrawn a bid may submit a bid with a higher value

during the open season, but neither that bidder nor any of its affiliates

may submit a bid with a lower value than the withdrawn bid, except if the

withdrawn bid was withdrawn due to a material error, during that open

season [value is to be determined applying the criteria in Section 5.1(d),

consistent with the posting for that open season]. If an open season is

extended, a bidder is free to submit a new bid without restriction in the

extended auction even if that bidder withdrew its bid in the original open

season. If a bidder withdraws its bid in an extended open season, the same

rules as in an original open season apply to that bidder. At the end of

any open season, all bids either withdrawn or not accepted shall be deemed

null and void.