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. 487 Original Sheet No. 487 : Pending

GENERAL TERMS AND CONDITIONS

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34. SALES BY NATURAL'S MERCHANT DIVISION

34.1 GENERAL

Effective December 1, 1993, sales service by Natural

under Rate Schedules DMQ-1, G-1, WS-1, WS-2, E-1, AOR-1 and IS-1

shall terminate. Thereafter, any sale made by Natural shall be

pursuant to this Section and to a blanket certificate issued by the

Commission. Sales by Natural shall be subject to any conditions

imposed by the Commission in authorizing, and to any Commission

Rules and Regulations applicable to, such blanket certificate.

This Section shall not apply to any gas sales made by any affiliate

of Natural.

34.2 SEPARATION OF FUNCTIONS

(a) In the event that Natural makes any sale after

December 1, 1993 other than a sale by its Transportation Division

identified in subsection (c) of this Section 34.2, Natural shall

establish a Merchant Division to make such sale. Natural does not

anticipate that any Merchant Division will be formed, but if it is,

the Merchant Division shall be separate from Natural's

Transportation Division, which markets and implements

transportation and storage services. The Merchant Division, if

any, shall be treated as a marketing affiliate for the purposes of

the requirements of Order Nos. 497, et seq., as such requirements

may be in effect from time to time. Natural's Transportation

Division shall not afford Natural's Merchant Division, if any, any

preference or favorable treatment vis a vis any other Shipper

similarly situated in any dealings between the two divisions.

Natural's Transportation Division shall provide services of equal

quality to all Shippers, consistent with the applicable Rate

Schedule, without regard to whether gas was purchased from

Natural's Merchant Division or from another entity. Natural's

Transportation Division shall disclose to non-affiliated suppliers

and Shippers non-public operating data available to personnel in

Natural's Merchant Division (if any). Unless otherwise indicated

or required by the context, references in this Tariff to "Natural"

shall encompass only Natural's Transportation Division.