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. 404 Original Sheet No. 404 : Pending

GENERAL TERMS AND CONDITIONS

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(e) In the event Natural constructs new lateral facilities

to accommodate a Shipper, Natural may require from the Shipper

security in an amount up to the cost of the facilities. This

provision does not apply to mainline expansions. Such security may be

in any of the forms available under Section 16(b) of these General

Terms and Conditions, at Shipper's choice. Natural is only permitted

to recover the cost of facilities once, either through rates or

through this provision. As Natural recovers the cost of these

facilities through its rates, the security required shall be reduced

accordingly. Specifically, collateral provided by a Shipper related

to new facilities shall be returned to that Shipper in equal monthly

amounts over the term of its contract for service related to the new

facilities or as otherwise mutually agreed by Natural and Shipper.

Where facilities are constructed to serve multiple Shippers, an

individual Shipper's obligation hereunder shall be for no more than

its proportionate share of the cost of the facilities. This

requirement is in addition to and shall not supersede or replace any

other rights that Natural may have regarding the construction and

reimbursement of facilities.

(f) Natural may not take any action under this Section 16

which conflicts with any order of the U.S. Bankruptcy Court.