Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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

First Revised Sheet No. 436 First Revised Sheet No. 436

Superseding: Original Sheet No. 436

GENERAL TERMS AND CONDITIONS

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(d) All payments received from a Replacement or

Subreplacement Shipper shall first be applied to reservation charges,

then to late charges on reservation charges, then to penalties, then to

late charges not on the reservation charges, and then last to commodity-

based charges. Except as may be otherwise provided pursuant to Section

49.4 of these General Terms and Conditions, payments by Replacement or

Subreplacement Shippers in excess of the total amount(s) due for the

Released Firm Transportation Agreement capacity shall be a credit applied

to any outstanding balance owed under any contract with Natural, or a

refund if requested in writing and no such outstanding balance exists.

(e) REFUNDS DUE UNDER RELEASES GREATER THAN ONE (1) YEAR

If Natural is obligated to refund any amounts

attributable to reservation charges for capacity which has been released,

Natural shall make the applicable refund to the Replacement Shipper to the

extent that Natural has actually received reservation charge amounts from

the Replacement Shipper in excess of the amounts assessable under the

revised maximum reservation charge rates (which amounts are credited to the

account of the Releasing Shipper under Section 19.13(d) above). Except as

may be otherwise provided pursuant to Section 49.4 of these General Terms

and Conditions, Natural shall make a corresponding adjustment to the

capacity release credit provided to the Releasing Shipper, and may reflect

the reduced capacity release credit in a lower refund or adjusted billings

to the Releasing Shipper, with any other applicable reservation charge

refunds going to the Releasing Shipper. Except as may be otherwise provided

pursuant to Section 49.4 of these General Terms and Conditions, commodity

rate refunds shall go to the party which paid the commodity charge.

(f) REFUNDS DUE UNDER RELEASES ONE (1) YEAR OR LESS

If Natural is obligated to refund any amounts

attributable to reservation charges for capacity which has been released

above the maximum rate for one year or less, Natural shall make the

applicable refund to the Releasing Shipper notwithstanding the amount that

Natural has actually received from the Replacement Shipper (which amounts

are credited to the account of the Releasing Shipper under Section 19.13(d)

above). Natural shall reflect the same credit from the Replacement Shipper

but shall adjust its billing to the Releasing Shipper to reflect the

revised maximum reservation rates. Except as may otherwise be provided

pursuant to Section 49.4 of these General Terms and Conditions, commodity

rate refunds shall go to the party which paid the commodity charge.