Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

Effective Date: 10/02/2010, Docket: RP10-147-005, Status: Effective

Original Sheet No. 306A Original Sheet No. 306A

GENERAL TERMS AND CONDITIONS

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(ii) Shipper submits a valid nomination

(that can be fully confirmed by the upstream and downstream operators)

in the timely nomination cycle for such Day for at least such posted

minimum percentage of Shipper's MDQ through the restricted area; and

(iii) Shipper's nomination is not reduced in

subsequent nomination cycles for such Day,

Shipper's Reservation Charges and related reservation-based surcharges

shall be eliminated for the quantity of gas not scheduled by Natural

between Shipper's valid nomination (including any increase in Shipper's

Timely nomination scheduled in later nomination cycles) and Shipper's

MDQ through the restricted area. For purposes of this subsection (2),

Shipper's otherwise valid nomination shall not be deemed to be reduced

below the minimum percentage posted by Natural, as a result of any

incidental minimal reduction in Shipper's nomination during the

scheduling process.

(3) With respect to subsection (2) above,

Shipper's Reservation Charges and related reservation-based surcharges

shall not be eliminated to the extent that the Shipper uses secondary

point service outside the affected segment. Moreover, if capacity in

excess of all shipper nominations is available through the restricted

area after the Timely nomination cycle for any Day, any adjustment to

Shipper's Reservation Charges and related reservation-based surcharges

that may have resulted from Shipper's nomination for such Day shall be

reduced by the amount of any such additional capacity that remains

unutilized after the Timely nomination cycle on a revised minimum

percentage of firm MDQ that is available to Shipper for nomination in

the Evening nomination cycle.

(4) Natural shall not be obligated to adjust the

Reservation Charge under any contract pursuant to Section 5.2(c) when

Natural's failure to deliver on any Day at least 98% of the Firm Daily

Volume:

(i) is the result of the conduct of Shipper

or the downstream operator of the facilities at the Delivery Point; or