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. 375 Original Sheet No. 375 : Pending

GENERAL TERMS AND CONDITIONS

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12. BALANCING SERVICE AND OVERRUN CHARGES

12.1 GENERAL

This Section applies to transportation services provided

under Rate Schedules FTS, FFTS, FTS-G, DSS and ITS, to storage services

provided under Rate Schedules PALS, BESS, DSS, FRSS and NSS and to line

pack service under Rate Schedules IBS and LPS. Except for the no-notice

aspect of service under Rate Schedules DSS, FTS-G/NB, FFTS-NB, FRSS and

FTS-NB, each Shipper has the obligation to ensure actual volumes delivered

to Natural at Receipt Points and actual volumes taken from Natural at

Delivery Points conform to the volumes nominated by the Shipper and

confirmed by Natural each day.

12.2 BALANCING SERVICE AND OVERRUN CHARGES DURING NON-

CRITICAL TIMES

(a) During periods when a Critical Time is not in

effect, if actual receipts, deliveries, injections or withdrawals under an

Agreement at a point on any day do not conform to a Shipper's rights under

its Agreements or to the sum of its confirmed nominations and available

no-notice rights, after receipts, deliveries, injections and withdrawals

are allocated consistent with Section 10 or 11 of these General Terms and

Conditions, as applicable, the following Overrun Charges and Balancing

Service Charges shall apply (except as provided in Section 12.6):

(1) In the event that receipts, deliveries,

injections or withdrawals allocated to a Shipper under said

Section 10 or 11 at any point or under any Agreement exceed Shipper's

available firm contractual rights (MDQ, MSV, IQ or WQ), an Overrun

Charge shall apply. Specifically, the Overrun Charges set out herein

shall apply to the following: volumes taken or tendered in excess of

MDQ under Rate Schedule FTS, FFTS or FTS-G; volumes taken or tendered

in excess of MDQ, MSV, IQ or WQ or volumes taken in excess of

Shipper's maximum withdrawal rights in any fifteen (15) day period

under Rate Schedule DSS; and volumes taken or tendered in excess of

MDQ, MSV, IQ or WQ under Rate Schedule NSS; volumes taken or tendered

in excess of MDQ, IQ, WQ or MSWQ under Rate Schedule FRSS; and

volumes taken or tendered in excess of Shipper's maximum daily access

volumes or maximum allowed cumulative IBS Balance under Rate Schedule

IBS; and volumes taken or tendered in excess of a Shipper's rights

under an LPS Agreement or in any way inconsistent with an LPS RO. In

addition, if a Shipper fails to satisfy the maximum or minimum

monthly withdrawal obligation in Rate Schedule DSS, an Overrun Charge