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. 431 Original Sheet No. 431 : Pending

GENERAL TERMS AND CONDITIONS

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outright. Any Qualified Bid with a contingency must have such

contingency eliminated before 3:00 p.m. Central Clock Time following

the close of the open season, unless the Releasing Shipper's offer

has specified a later time; otherwise, such Qualified Bid will be

rejected.

(b) Natural shall calculate a Bid Value for each

Qualified Bid and Prearranged Release (if any), and shall calculate

the Winning Bid Value, as follows:

(1) For each month, the volume and reservation

charge per Dth stated in the Qualified Bid shall be multiplied

together to derive a gross monthly revenue figure. If the Qualified

Bids contain volumetric-based charges permitted by the Capacity

Release Request, then the gross monthly revenue figure shall be

equal to any minimum amount designated by the bidder to be billed as

a reservation charge even if there is no (or insufficient) flow.

(2) Each gross monthly revenue figure shall be

discounted to a net present value figure as of the first day of the

capacity release as sought in the Capacity Release Request, using

the current Federal Energy Regulatory Commission interest rate as

defined in 18 C.F.R. Section 154.501(d).

(3) The net present value figures for the proposed

release shall be summed, and such sum shall be the Bid Value.

first (highest Bid Value or other evaluation criteria as specified

by the Shipper in the Capacity Release Offer), until all offered

capacity is awarded. The best qualified bid will be awarded its

Maximum Bid volume and any subsequent bids will be awarded up to

their Maximum Bid Volume but no less than their Minimum Bid Volume.

(d) In the event ties exist among Qualified Bids, the

Qualified Bid submitted and received earliest by Natural's

Interactive Web Site (or if Natural's Interactive Web Site is not

available and the Qualified Bid is submitted in writing, the time

Natural received the Qualified Bid) shall be the winning bid.

(e) The following are examples of how (c) and (d) are

applied: