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. 397 Original Sheet No. 397 : Pending

GENERAL TERMS AND CONDITIONS

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(4) Natural shall next apply all revenue under a

firm Agreement in excess of that accounted for under subsections

(1) through (3) above to base reservation charges up to the maximum

reservation charge rate applicable to such Agreement.

(c) Where the rate assessed by Natural on any

interruptible Agreement is less than the maximum rate applicable to

that Agreement plus all surcharges applicable to such Agreement,

then for the purposes stated above, Natural shall determine the

rate elements actually assessed (and thus, the elements which have

been discounted) by the following procedure:

(1) Natural shall first apply all revenue under

an interruptible Agreement to the ACA Surcharge under Section 40 of

these General Terms and Conditions up to the maximum level of the

ACA Surcharge rate, if any, applicable to such Agreement.

(2) Natural shall next apply all revenue under an

interruptible Agreement in excess of that accounted for under

subsection (1) above to the component of the interruptible rate for

the collection of gas supply realignment costs under Section 38 of

these General Terms and Conditions, where applicable, up to the

maximum level of the component included in unit rates for that

purpose and applicable to such Agreement under said Section 38.

(3) Natural shall next apply all revenue under an

interruptible Agreement in excess of that accounted for under

subsections (1) and (2) above to the base commodity rate applicable

to such Agreement.