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. 369 Original Sheet No. 369 : Pending

GENERAL TERMS AND CONDITIONS

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11.3 POINT OPERATOR ALLOCATION AGREEMENT

(a) The operator of facilities immediately downstream

of a Delivery Point which has physical control of the volumes taken

away from Natural and is willing to take responsibility for

disposition of the volumes it receives from Natural has the option

to elect a predetermined allocation pursuant to this Section 11.3.

Allocation agreements under this Section 11.3 may apply to physical

Delivery Points, to Central Delivery Points or to other point

groupings mutually agreeable to Natural and the point operator. To

perfect such an election, such point operator must execute a Point

Operator Allocation Agreement which adheres to the delivery

sequences set out herein, except as such sequence may be modified by

mutual agreement between Natural and the point operator, and which

covers deliveries under all Agreements pursuant to which gas is

delivered by Natural at the point other than those specifically

excluded by mutual agreement of Natural and the point operator

(Applicable Agreements).

(b) In the event that volumes delivered by Natural

under Applicable Agreements at any Delivery Point equal or exceed

the sum of confirmed nominations at such point on any day, the

delivery sequence for that day shall be as follows:

(1) First, confirmed nominations under all

Applicable Agreements shall be deemed delivered for that day;

provided, however, that volumes deemed delivered for that day are

subject to adjustment (as part of the allocation done for that day)

under Rate Schedules DSS, FRSS and FTS-NB, FFTS-NB or FTS-G/NB

reflecting no-notice changes thereunder pursuant to later steps in

this delivery sequence.

(2) Volumes equal to up to the percentage of the

confirmed nominations under step (1) which corresponds to the

percentage for the Balancing Service Charge tier under Section 12 of

these General Terms and Conditions for which no additional charge is

assessed under then prevailing circumstances (or such greater

minimum volume as provided under Section 12.6) are the next volumes

deemed delivered on any day (which absorbs any allowable balancing

service provided without additional charge under Section 12 of these

General Terms and Conditions) and are allocated to the point

operator's account, but volumes shall be deemed delivered to the

point operator's account only to the extent necessary to account for