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. 377 Original Sheet No. 377 : Pending

GENERAL TERMS AND CONDITIONS

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(2) If the volumes allocated to any FTS, FFTS, FTS-G,

LPS or ITS Agreement fail to equal the confirmed nomination under

such Agreement or if volumes allocated to any DSS, NSS, FRSS, FTS-

G/NB, FFTS-NB, FTS-NB or PALS Agreement are inconsistent with

confirmed nominations and/or available no-notice rights, as

applicable, the following charges [in addition to any charges

applicable under subsection (1)] shall apply, subject to the

availability of balancing service under Rate Schedule IBS consistent

with its terms, based on the degree of variance between actual,

deliveries, injections or withdrawals and Shipper's rights and/or

confirmed nominations (no charge hereunder shall apply for variances

at Receipt Points):

VARIANCE CHARGE

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0% to 5% No additional charges

5% to 10% $0.10/Dth

10% to 20% $0.20/Dth

20% to 50% $0.30/Dth

Above 50% $0.50/Dth

Such charges shall also apply as specified in Section 6(d) of Rate

Schedule IBS.

(3) Natural may discount or waive charges under

subsection (2) on a basis which is not unduly discriminatory.

(4) Tiered Balancing Service Charges under Sections

12.2, 12.3 and 12.4 shall be applied on a graduated basis, i.e.,

the specified charge shall apply only to that portion of the

variance which is within the corresponding tier between its lower

and upper percentage boundaries (variances within a range greater

than the lower boundary and equal to or less than the upper

boundary) and not to any portion of the variance falling within

other tiers.

(b) A Shipper subject to any Overrun Charges and/or

Balancing Service Charge(s) under subsection (a) shall, in

addition, pay an applicable transportation commodity charge on

takes from Natural in excess of applicable rights and shall be

obligated to return any volumes taken from Natural in excess of

volumes delivered to Natural which are not accommodated through

storage withdrawals from such Shipper's storage account(s). The

volume of any imbalance remaining at the end of the month will be

cashed out under Section 13 of these General Terms and Conditions.