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. 354 Original Sheet No. 354 : Pending

GENERAL TERMS AND CONDITIONS

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8.14 (a) Commencing December 1, 2003, a Shipper may segment

the primary path of its firm capacity to the extent operationally

feasible through the nomination process under this Section 8.14. If a

Shipper segments its contract path consistent with this Section 8.14,

the single previously agreed-upon demand charge for reservation of

capacity shall continue to apply under that contract, as defined in the

Agreement and any related discount agreement, regardless of the number

of segments. In addition, any Shipper may segment the primary path of

its firm capacity by releasing one or more segments of that capacity

(the releasing Shipper may retain one or more segments of its primary

path), to the extent operationally feasible, by following the procedures

set out in Section 19 of these General Terms and Conditions. In the

case of segmentation through release, the Original Shipper may segment

by nomination any portion of the primary path it retains to the extent

operationally feasible and the Replacement Shipper may segment by

nomination any portion of the primary path it obtains in the release to

the extent operationally feasible.

(b) For the purposes of this Section 8.14 and subject to

the other provisions hereof, whether segmentation is through nomination

or results from release of firm capacity on a segmented basis as set out

in Section 8.14(a), segmentation must be of the primary path under an

Agreement and shall be deemed operationally feasible unless: (i) the

segmentation would result in an increase in firm contractual obligation

by Natural on any segment or portion of its system (through an overlap

of segments); (ii) the segmentation would result in a forward-haul in a

direction opposite to the primary path of the Agreement being segmented,

as further set out in (e) below [backhauls are also addressed in (e)

below]; or (iii) the segmentation is inconsistent with Section 2(h) of

Rate Schedule DSS, Section 2(g) of Rate Schedule FRSS, Section 2(e) of

Rate Schedule FTS, Sections 4(f) and 6 of Rate Schedule FTS-G, or

Section 8.13(c) of these General Terms and Conditions; provided,

however, that any separately-contracted transportation capacity in

conjunction with service under Rate Schedules DSS and FRSS may be

segmented consistent with this Section 8.14.

under this Section 8.14, each segment shall have secondary point rights

in the zone(s) traversed by the path of that segment, subject to the

remainder of this Section 8.14(c) and Section 5.5 of these General Terms

and Conditions (relating to secondary point rights); provided, however,

that if nominations result in an overlapping path (including secondary

out-of-path overlap resulting from nominations), flows in excess of the

original contract MDQ in the area of overlap shall be subject to overrun

charges.