Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 02/22/2009, Docket: RP09-240-000, Status: Effective

First Revised Sheet No. 435 First Revised Sheet No. 435

Superseding: Original Sheet No. 435

GENERAL TERMS AND CONDITIONS

----------------------------

gas purchase or gas inventory volumes tied to a transportation or

storage capacity release. Such charges shall be between the

Releasing Shipper and Replacement Shipper. Natural shall have the

right to discount the commodity rates under the Released Firm

Transportation Agreement. Natural will support volumetric releases

with volumetric commitments by fully accounting for volumetric and

reservation components, consistent with the rules and regulations

enunciated by the Federal Energy Regulatory Commission.

(b) A Releasing Shipper shall be billed the

reservation charge associated with the entire amount of released

capacity pursuant to its contract rate, which includes all non-

commodity based charges under Natural's Tariff for such released

capacity including but not limited to additional direct-bill

charges and FERC Order No. 636 transition costs, with a concurrent

conditional credit for payment of the reservation charge due from

the Replacement or Subreplacement Shipper(s), as applicable, which

received the released capacity. A Releasing Shipper shall also be

billed a marketing fee, if applicable, pursuant to the provisions

of Section 20 of these General Terms and Conditions. As to any

capacity released by a Releasing Shipper, the Releasing Shipper

shall not be billed or be responsible for: (1) commodity charges;

(2) scheduling or imbalance charges or penalties; and (3) add-on

charges and surcharges applicable to Natural's commodity rates

under Natural's Tariff such as ACA, Fuel Gas and Gas Lost and

Unaccounted For, which are incurred by a Replacement Shipper or

Subreplacement Shipper which received the released capacity.

(c) If a Replacement Shipper or Subreplacement Shipper

does not make payment to Natural of the reservation portion of the

charges due as set forth in its Released Firm Transportation

Agreement, Natural shall bill the Releasing Shipper(s) from whom

such Replacement or Subreplacement Shipper received the capacity

for the amount(s) due, including all applicable late charges

authorized by Natural's Tariff, and such amount shall be paid by

such Releasing Shipper within ten (10) days of the receipt of such

billing, or interest shall continue to accrue. In the event that

the Replacement or Subreplacement Shipper has not paid such

amount(s) due by the end of such ten (10) day period, then: (1)

the Releasing Shipper has the right to recall the capacity; (2)

Natural's rights against the delinquent Replacement/Subreplacement

Shipper shall be subrogated to the related rights of the Releasing

Shipper; and (3) Natural shall make a reasonable effort to collect

from the Replacement/Subreplacement Shipper the amount(s) due. Such

reasonable effort shall not include incurring costs from outside

attorneys, collection agents or other third parties.