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. 383 Original Sheet No. 383 : Pending

GENERAL TERMS AND CONDITIONS

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paid by any Shipper during any month in which such Shipper failed to

comply with an Operational Flow Order or had an Unauthorized Overrun.

Natural shall also distribute interest on the net penalty revenue

distributed from the date such penalty revenue is actually received by

Natural to the date of distribution, calculated in accordance with 18

C.F.R. Section 154.501. While distribution is made every six months,

the net penalty revenue credit shall be calculated on a monthly basis.

A Shipper which failed to comply with an Operational Flow Order or had

an Unauthorized Overrun shall be excluded from distribution of net

penalty revenues only for the month in which that violation occurred.

Where capacity has been released, any amounts distributed hereunder with

respect to the released capacity shall be distributed to the Original

Shipper and the calculation and amounts distributed to the Original

Shipper shall be based on the gross base commodity and reservation

charges paid by that Shipper (without considering any credits from

Replacement Shippers) during the relevant 6 month period; provided,

however, that in the case of a permanent release, any amounts

distributed hereunder with respect to the released capacity shall be

distributed to the Replacement Shipper and the calculation and the

amounts distributed to the Replacement Shipper shall be based on the

base commodity and reservation charges paid by that Replacement Shipper

during the relevant 6 month period.