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. 366 Original Sheet No. 366 : Pending

GENERAL TERMS AND CONDITIONS

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10. DETERMINATION OF DAILY RECEIPTS

10.1 To the extent feasible, all volumes received by Natural at a

Receipt Point shall be allocated in accordance with the confirmed

nominations for that point. In the event the actual volumes received by

Natural do not equal the confirmed nominations for that point, any

underage or overage will be allocated as follows:

(a) First, in accordance with the effective predetermined

allocations (PDAs) submitted by those entities (Allocators) owning or

controlling the gas being delivered to Natural. An operational balancing

agreement ("OBA") is one type of a PDA. Shipper agrees that such an

allocation is binding on Shipper.

(b) Then, if there is no effective PDA, pro rata to the

extent applicable based on confirmed nominations or transfer

nominations, as applicable. Shipper agrees that such an allocation is

binding on Shipper.

10.2 Each Shipper shall be responsible for ensuring that its

suppliers submit PDAs as provided herein, except that no other PDAs need

be submitted if an OBA is in effect at a point. All PDAs must be

submitted to Natural through Natural's Interactive Website, EDI, or

other agreed upon electronic means, on or before the gas Day the PDA is

to be effective. Such PDA shall specify how any underage or overage from

the confirmed nominated volumes should be allocated among the entities

listed on the PDA. Natural shall acknowledge receipt and acceptance of

the PDA through Natural's Interactive Website if received through

Natural's Interactive Website or via EDI if received via EDI (or

returning via some other mutually agreeable means the PDA to Allocator).

Such notification of acknowledgment and acceptance will be within

fifteen (15) minutes of receipt. Natural's acceptance is contingent on

Natural being able to administer the allocation submitted by the

Allocator. Allocation methodology types upon which two parties may agree

are: ranked, pro rata, percentages, swing and operator provided value.

Other examples of allocation methods which can be used are matching of

supply sources with specified customers and combinations of methodology

types. Different methods may be submitted for overages and underages.

If the parties cannot agree, Section 10.1(b) shall apply.