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. 505 Original Sheet No. 505 : Pending

GENERAL TERMS AND CONDITIONS

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(2) Each of the amounts in (1) is a fixed

obligation for the designated customer which is not affected by

termination of any Agreement, but shall be subject to adjustment

pursuant to Section 38.5(d).

(3) (i) This Section 38.5 shall be a

comprehensive treatment of the assessment of Supply Realignment

Costs to G Customers and the charges provided for herein are in

lieu of all otherwise applicable charges for Supply Realignment

Costs. Natural's recovery of Supply Realignment Costs from G

Customers relating to service in their traditional market areas

shall be limited to the provisions of this Section 38.5 and Supply

Realignment Costs recoverable hereunder shall not [except as

expressly provided in Section 38.5(d)] be subject to adjustment.

No demand charges or volumetric charges other than provided herein

for recovery of such charges shall apply to any Agreement of any of

the G Customers for delivery in such customer's traditional market

area. For the purposes hereof, the term "traditional market area"

shall refer to markets of any of the G Customers into which Natural

had at any time since 1985 provided G-1 service for such customer.

(ii) Any actual or imputed collection of

Supply Realignment Costs by Natural from other customers shall not

reduce recoveries from any of the G Customers nor, except as

otherwise provided in Section 38.7, shall any of the G Customers be

entitled to any credit or refund as a result of Natural having

collected or being deemed to have collected any Supply Realignment

Costs from any other Shipper. Underrecoveries of Supply

Realignment Costs from other customers (whether firm or

interruptible) shall not be shifted to any of the G Customers nor

shall overrecoveries of Supply Realignment Costs from any such

customers reduce the allocation of Supply Realignment Costs to any

of the G Customers.

(iii) Notwithstanding the remainder of this

subsection (3), nothing herein shall prejudice or preclude Natural

from filing to collect pursuant to generally applicable tariff

provisions any transition costs under Order Nos. 636, et seq.,

flowed through from upstream pipelines (it being understood,

however, that the G Customer Settlement encompasses all upstream

transition costs associated with Coal Gas). Each of the G Customers

reserves all rights to protest and object to any filing by Natural

to institute such recovery. Further, to the extent Supply

Realignment Costs are allocated to and embedded in base rates for

Rate Schedule ITS, nothing herein shall be read to preclude

collection of such base rates by Natural from any of the G Customers