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. 449 Original Sheet No. 449 : Pending

GENERAL TERMS AND CONDITIONS

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858 contracts only to the extent the costs of such contracts are

reflected in Natural's jurisdictional rates. Upstream Capacity must

be held by Natural's Transportation Division, not by Natural's

Merchant Division, if any.

(b) Natural shall release all or any portion of

Upstream Capacity, in accordance with the capacity release program

of the upstream pipeline, provided that such a release reduces the

cost to Natural of such arrangements. The entity to which Natural

releases its capacity shall be responsible for providing Fuel Gas or

Gas Lost and Unaccounted For to the upstream pipeline. All revenue

received by Natural for releases (net of any variable costs incurred

by Natural from the upstream pipeline in connection with such

releases) shall be credited by Natural to Account No. 858. Such a

credit shall reduce Account No. 858 costs in the next semi-annual

tracking filing hereunder by Natural. Natural shall first apply

such revenue to offset any amounts allocated to Agreements which

Natural cannot collect due to contractual constraints in such

Agreements (such as offsetting underrecoveries prior to institution

of the discounting adjustment on April 1, 1994); provided, however,

that such revenue may not be applied to offset any revenue Natural

is deemed to have collected but did not actually collect for new

contracts entered into after the end of the rate case test period as

set out in Section 21.3(c). With respect to any remaining revenue,

Natural shall allocate such net revenue credit in the same manner

that the costs of Upstream Capacity are allocated in developing

Natural's tracking rates under Section 21.3(d) of these General

Terms and Conditions.

21.7 As utilized in this Section 21 and in Section 38 of

these General Terms and Conditions, the terms "Midwest Zone" and

"Production Zone" shall have the following meanings:

(a) The Midwest Zone shall consist of all facilities

north of Station 103 on the Amarillo Line and north of Station 302

on the Gulf Coast Line.

(b) The Production Zone shall consist of all other

facilities on Natural's system.