Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 468 Original Sheet No. 468 : Pending

GENERAL TERMS AND CONDITIONS

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23.9 APPLICABILITY OF ACTIONS

(a) In exercising its authority pursuant to

Sections 23.4 through 23.8, Natural shall generally direct its

actions to Shippers in the following sequence, to the extent such

actions and/or sequencing will tend to alleviate the situation to be

addressed:

(1) First, to any Shipper which is causing

disruption due to its failure to maintain receipts and deliveries in

balance or to match physical flows with nominated receipts or

deliveries (after taking into account any storage rights of such

Shipper);

(2) Second, to any Shipper which has failed or is

failing to take action to anticipate a change in demand (i.e., a

temperature sensitive LDC or end user failing to respond to changes

in weather);

(3) Third, to any Shipper which is operating in a

manner which conflicts with sound operational practices in relation

to Natural's system; and

(4) Lastly, to all other Shippers.

(b) Notwithstanding subsection (a), any Shipper which

has taken voluntary action to alleviate a situation shall be exempted

from further action hereunder to the extent of its voluntary action

until Natural has applied equivalent measures to other Shippers.

(c) Operational Flow Orders shall require action within

any Shipper class proportionate to appropriate and relevant

parameters, such as applicable contract quantities or current or

recent flowing gas volumes.

23.10 USE OF PENALTY FUNDS

(a) Funds collected during each calendar year from

Shippers billed for violations of Operational Flow Orders issued

during Critical and non-Critical Times will be subject to the

provisions of Section 12.8 of these General Terms and Conditions.