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. 508 Original Sheet No. 508 : Pending

GENERAL TERMS AND CONDITIONS

----------------------------

(2) If collections from any of the G Customers

equal that customer's cost responsibility under Section 38.5(a)(1),

as adjusted under this subsection (d), collections hereunder from

that customer shall cease and that customer shall have no further

responsibility for Supply Realignment Costs. If collections from

any of the G Customers exceed that customer's cost responsibility

under Section 38.5(a)(1), as adjusted under this Section 38.5(d),

then Natural shall refund the difference between the amount

collected hereunder from that customer and its cost responsibility,

plus applicable interest at the Commission approved rate under 18

C.F.R. Section 154.501(d). In the event that total collections from

any of the G Customers hereunder are less than that customer's total

cost responsibility in Section 38.5(a)(1), as adjusted under this

Section 38.5(d), billing hereunder shall continue at rates provided

for in Section 38.5(b), and Natural shall repeat the reconciliation

procedure at twelve (12) month intervals, until such customer's cost

responsibility has been fully satisfied.

(3) The Reconciliation Report shall be made

available only to G Customers and interested state commissions.

38.6 DEMAND SURCHARGES FOR NON-SETTLING CUSTOMERS

This Section governs the Demand Surcharges to be

assessed to Assessable Shippers. Such Assessable Shippers are non-

settling firm transportation customers of Natural, the Supply

Realignment Cost charges to which are not governed by either Section

38.4 or Section 38.5 of these General Terms and Conditions. Such

Demand Surcharges ceased effective December 1, 2001.

(a) Each Assessable Shipper shall be subject to a

monthly Demand Surcharge. Commencing June 1, 1995, the Demand

Surcharge over the remainder of the Amortization Period shall equal

$3.12 per unit of contract demand per month for deliveries in

Natural's Midwest Zone, as defined in Section 21.7 of these General

Terms and Conditions. For deliveries in any other zone, the rate

shall be twenty percent (20%) of $3.12 or $.624. Assessments of

Demand Surcharges shall be based on the contract demands for

Assessable Shippers in effect from time to time. Such rates shall

be filed consistent with subsection (b). Demand Surcharges

collected from any Assessable Shipper shall be subject to adjustment

as provided in subsection (e) below.