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. 338 Original Sheet No. 338 : Pending

GENERAL TERMS AND CONDITIONS

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7.2 DELIVERY FACILITIES

(a) Unless otherwise agreed, Natural shall own,

operate and maintain all pipeline and measurement facilities

necessary to deliver and measure gas hereunder. Shipper or the

interconnecting party shall (in addition to all other applicable

charges) reimburse Natural for the actual cost (including income

taxes associated with a contribution-in-aid of construction) of any

and all facilities installed by Natural pursuant to this Section at

Shipper's or the interconnecting party's request in order to

provide service for such Shipper or interconnecting party

including, but not limited to, the cost of all labor, materials and

rights-of-way; provided that Shipper or the interconnecting party

shall repay Natural in kind for any gas lost from Natural's

pipeline as a result of the installation of such facilities.

Natural may submit billings to Shipper or the interconnecting party

up to sixty (60) days in advance for the estimated cost of

construction to be incurred by Natural. Shipper or the

interconnecting party shall make payments within ten (10) days of

the date of receipt of any billings submitted by Natural pursuant

to this Section. For purposes of this Section, the bill is deemed

to be received by Shipper or the interconnecting party three (3)

days after the postmark date. Late payments shall be subject to

the provisions contained in Section 15 of these General Terms and

Conditions. Any such estimated billings shall be reconciled to the

actual costs of construction, and any payments to reflect such

reconciliation shall be made within a time period and on terms

agreed to by the parties. Neither the amounts collected hereunder

nor the cost of such facilities shall be recognized in establishing

Natural's general system rates.

(b) Natural may elect, on a nondiscriminatory basis,

to pay all or a portion of the costs of the facilities constructed

pursuant to subsection (a) above if Natural determines that the

construction of such facilities is economically beneficial to

Natural. For purposes of determining whether a project is

beneficial, Natural will evaluate projects on the basis of various

economic criteria, which will include the estimated transportation

throughput, cost of the facilities, operating and maintenance as

well as administrative and general expenses attributable to the

facilities, the revenues Natural estimates will be generated as a

result of such construction, and the availability of capital funds

on terms and conditions acceptable to Natural. In estimating the

revenues to be generated, Natural will base those revenues upon

transportation rates it expects to be able to charge, exclusive of

any surcharges such as ACA, and the projected incremental volumes

which will result from the project.