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. 392 Original Sheet No. 392 : Pending

GENERAL TERMS AND CONDITIONS

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(b) If a Valid Claim and Valid Nomination are

submitted after three (3) business days of the posting of Notice

but within sixty (60) calendar days of the posting of Notice,

Natural shall assess a penalty of fifty cents ($.50) per Dth upon

that Shipper transporting the Unauthorized Gas after nomination to

a transportation Agreement with Natural.

submitted after sixty (60) calendar days of the posting of Notice,

Natural shall assess a penalty of one dollar ($1.00) per Dth upon

that Shipper transporting the Unauthorized Gas after nomination to

a transportation Agreement with Natural.

(d) If a Valid Claim and Valid Nomination are not

submitted within one hundred twenty (120) calendar days of Notice,

Natural shall retain the gas without any payment required of

Natural.

(e) For accounting purposes, the gas retained shall

be debited to Account 483, Sales for Resale, with a contra entry

to Account 232, Refunds Due Customers. The debit shall be valued

at a price equal to the lower of the Market Index Price for the

month that the Unauthorized Gas was received or the Market Index

Price for the month one hundred twenty (120) days after Notice.

The Market Index Price shall be the arithmetic average of the

prices for spot gas delivered to interstate pipelines, as reported

in the first issue published on or after the fourth day of the

month, for the following publications and geographical areas:

Publication Regions

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* Inside FERC's Gas Market Report * Oklahoma

"Prices of Spot Gas Delivered * Kansas

Delivered to Pipelines" * Texas

* Louisiana

* Offshore

* Anadarko Basin

* Permian Basin

* Those Stations or Zones

located in any of the

above listed areas.