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. 509 Original Sheet No. 509 : Pending

GENERAL TERMS AND CONDITIONS

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(b) The monthly Demand Surcharge rate shall only be

subject to adjustment during the Amortization Period on a quarterly

basis to the extent the rate actually being assessed to members of

the Natural Customer Group under Section 38.4 is less than $3.12.

For any Extended Amortization Period, rates shall be calculated

consistent with Section 38.10(b), but subject to the limitation in

subsection (d) of this Section 38.6 as to collections under any

individual Agreement. Changes in the level of the Demand Surcharge

to track such revised rates are to be made by the filing of a

revised tariff sheet to be effective the ensuing March 1, June 1,

September 1, or December 1, subject to refund, upon thirty (30)

days' notice. Filings hereunder need not be supported by specific

cost data but are subject to the reconciliation and refund

provisions of subsection (e) of this Section 38.6 and of Section

38.10 of these General Terms and Conditions. No quarterly filing

need be made for any quarter if no change in rate is required to

maintain rates consistent with subsection (a).

shall reflect the difference for the period commencing December 1,

1993, between total revenues collected under this Section 38.6 or

precessor provisions of this Section 38 and the Supply Realignment

Costs allocable to Assessable Shippers. The amount of Supply

Realignment Costs allocable to Assessable Shippers shall be

determined as follows:

(1) Natural shall first determine the total Supply

Realignment Costs in a manner consistent with Section 38.2(a) of

these General Terms and Conditions;

(2) Ten percent (10%) of the Supply Realignment

Costs determined under (1) will be allocated for recovery pursuant

to Section 38.7 of these General Terms and Conditions;

(3) Next, Natural shall exclude all costs

allocable to the Natural Customer Group, G Customers and Other

Consenting Customers under Sections 38.4 and 38.5 of these General

Terms and Conditions; and

(4) The remaining Supply Realignment Costs shall

be allocated among Assessable Shippers (which allocation may reflect

appropriate customer classes) based on their respective contract

demands for Assessable Transportation Services in effect at that

time.