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. 299 Original Sheet No. 299 : Pending

GENERAL TERMS AND CONDITIONS

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Reservation of capacity under this Section 5.1(c)(11)

shall not in any way modify or limit the rights under Sections 18, 19

and 22 of these General Terms and Conditions of an existing Shipper

under a contract entered into prior to September 1, 1999, and shall

only modify other Shipper's rights to the extent specified in this

Section and in Section 22.1 of these General Terms and Conditions.

(12) CAPACITY AWARDED FOR INTERIM PERIOD This provision

applies in situations where firm capacity is awarded commencing on a

future date and such capacity is not already subject to firm

contract(s) for the entire interim period before such future service

commencement date. Nothing herein shall affect any Extension Right, as

defined in Section 5.1(c)(2) hereof, in effect on the initial effective

date of this provision.

(i) Natural may market such capacity for the

interim period until service under the capacity award becomes

effective.

(ii) If firm capacity is available for only an

interim period for any reason (e.g., because the firm capacity is

already contracted at a future date after such interim period or the

firm capacity is only available physically or operationally for that

interim period), then Natural may limit the Extension Rights of the

Shipper awarded the capacity for that interim period. Natural will

indicate in any open season posting for such capacity the limitation on

Extension Rights which will apply to such firm capacity awarded for the

interim period.

(d) EVALUATION OF COMPETING BIDS AND REQUESTS In comparing

valid bids received in an open season or in comparing two or more valid

and competing pending requests for service under the Request Procedure,

Natural will award firm capacity based on the highest economic value,

as defined in this Section 5.1(d).

(1) HIGHEST ECONOMIC VALUE The highest economic value

is the highest net present value of the stream of incremental revenue

produced by a valid bid or request, or combination of valid bids or

requests, received by Natural for firm capacity. Incremental revenue

is the additional revenue Natural would collect from a Shipper under

any bid or request over and above the revenue Natural would otherwise

have received after taking into account any revenue lost or affected by

the bid or request (i.e., where an existing capacity holder submits a