Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

Effective Date: 11/01/2010, Docket: RP10-1223-000, Status: Pending

Second Revised Sheet No. 423 Second Revised Sheet No. 423

Superseding: First Revised Sheet No. 423

GENERAL TERMS AND CONDITIONS

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The Releasing Shipper shall warrant that the computer diskette conforms

to the bid evaluation procedure in the Capacity Release Request.

For the capacity release business process timing

model, only the following methodologies are supported by Natural and

provided to Releasing Shippers as choices from which they may select and,

once chosen, will be used in determining the awards from the bid(s)

submitted. They are: 1) highest rate, 2) net revenues and 3) present

value. For index-based capacity release transactions, the Releasing

Shipper should provide the necessary information and instructions to

support the chosen methodology. Other choices of bid evaluation

methodology (including other Releasing Shipper defined evaluation

methodologies) can be accorded similar timeline evaluation treatment at

the discretion of Natural. However, Natural is not required to offer

other choices or similar timeline treatment for other choices, nor, is

Natural held to the timeline should the Releasing Shipper elect another

method of evaluation.

(b) The quantity sought to be released under a Capacity

Release Request shall not be less than the minimum quantity required for

the Eligible Firm Transportation Agreement under Natural's Tariff.

this Section 19 shall be at least one full day and shall not exceed the

remaining term of the Eligible Firm Transportation Agreement.

(d) (l) Segmented releases are subject to Section 8.14

of these General Terms and Conditions.

(2) (i) The maximum rates that may be bid and

charged for a Released Firm Transportation Agreement that is for a term

greater than one (1) year are the maximum lawful rates applicable to the

Eligible Firm Transportation Agreement held by the Original Shipper. If

the Original Shipper is paying a Negotiated Rate or a rate under a

Negotiated Rate Formula pursuant to Section 49 of these General Terms and

Conditions, a Qualified Bidder may not bid a rate which exceeds the

applicable Recourse Rate or is less than the applicable minimum rate a

qualified Bidder may bid a rate form which would be a Negotiated Rate or

Negotiated Rate Formula if and only if the rate form is one explicitly

recognized in Natural's Tariff as available for capacity releases (such

as volumetric rates); provided the resulting charges must be within the

range set by the applicable maximum and minimum rates.

(ii) There is no maximum rate limitation

applicable to bids for capacity release for a term of one (1) year or

less, if the release is to take effect on or before one (1) year from the

date on which Natural is notified of the release.