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. 379 Original Sheet No. 379 : Pending

GENERAL TERMS AND CONDITIONS

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Balancing Service Charges will be assessed for the variances that

are to the detriment of Natural's system, except as provided in

Section 12.6. Balancing Service Charges in effect during a

Critical Time will be as follows:

VARIANCE CHARGE

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0% to 3% Greater of $4.00/Dth or 2 times AMIP

3% to 10% Greater of $12.00/Dth or 6 times AMIP

10% to 20% Greater of $40.00/Dth or 20 times AMIP

20% to 50% Greater of $80.00/Dth or 40 times AMIP

Above 50% Greater of $200.00/Dth or 100 times AMIP

(b) Shipper shall in addition pay all applicable

charges specified in Sections 12.2(a)(1) and 12.2(b). Charges

hereunder shall be in lieu of any otherwise applicable Balancing

Service Charges under Sections 12.2(a)(2) and 12.3, but the

charges identified in the prior sentence shall still apply.

that is not eliminated before the end of the month will be

subject to the cashout and offsetting provisions of Section 13;

provided, however, that any remaining imbalance created during a

Critical Time which helped the system will be cashed out at 100%

of the AMIP.

12.5 DECLARATION OF A CRITICAL TIME

(a) A Critical Time may be declared (1) when the

total physical receipts to all or a portion of the system are

approaching or expected to approach, a level that is in excess of

the total physical deliveries plus the maximum volumes of gas

Natural is able to inject into Natural's storage without

jeopardizing the integrity of Natural's storage facilities; (2)

when the total physical deliveries from all or a portion of the

system are approaching or expected to approach, a level that is

in excess of the total physical receipts and the maximum volume

of gas available to be withdrawn from Natural's storage without

jeopardizing the integrity of Natural's storage facilities; (3)

when system pressure on one or more pipeline segments is falling

and approaching a level or is expected to fall and approach a

level that is at or below the minimum that Natural considers

necessary for system integrity or to fulfill its firm contractual

obligations; (4) when system pressure on one or more pipeline