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. 510 Original Sheet No. 510 : Pending

GENERAL TERMS AND CONDITIONS

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Natural shall be deemed to have collected Supply Realignment Costs

from all Shippers with Assessable Transportation Services based on

MDQs in effect from time to time, irrespective of whether Natural

had discounted such Agreements, except as provided in filings

pursuant to Section 38.10(c); provided, however, that no Supply

Realignment Costs shall be allocated to, nor shall Natural be deemed

to have collected Supply Realignment Costs from all Shippers with

Assessable Transportation Services based on MDQs in effect from time

to time, irrespective of whether Natural had discounted such

Agreements, except as provided in filings pursuant to Section

38.10(c); provided, however, that no Supply Realignment Costs shall

be allocated to, nor shall Natural be deemed to have collected

Supply Realignment Costs on, any Agreement which replaces an

Agreement currently held by a settling customer and is within the

contract demand for such customer utilized as billing determinants

for calculating Supply Realignment Costs for such customers in

Section 38.4 or 38.5. If, at the end of the Amortization Period, a

positive balance remains in the Adjustment Account, Natural may

establish rates to be assessed to Assessable Shippers for an

Extended Amortization Period, which rates shall equal the rates

specified in subsection (a) or such lower rate as was last assessed

during the Amortization Period under subsection (b), but subject to

the limitations of subsection (d).

(d) Notwithstanding any other provision of this

Section 38, no Assessable Shipper shall be billed or obligated to

pay Supply Realignment Costs for any firm Agreement in excess of

forty-eight (48) times the applicable contract MDQ times $3.12 for

Midwest Zone deliveries or $.624 for deliveries in the Production

Zones, as Midwest and Production Zones are defined in Section 21.7

of these General Terms and Conditions [or such lesser monthly Demand

Surcharge rate as is determined in a reconciliation under subsection

(e)]. Nothing herein shall be read or implied to override any

contractual arrangement between Natural and any Shipper resulting in

a lesser payment of Supply Realignment Costs under any Agreement.

(e) Billings to and collections from Assessable

Shippers shall be subject to a reconciliation consistent with

Section 38.10 of these General Terms and Conditions at the end of

the Amortization Period and of any Extended Amortization Period.

In the event that the reconciliation for the Natural Customer Group

under Section 38.10(a) of these General Terms and Conditions

results in a lower average monthly demand surcharge rate than

$3.12 for Midwest Zone deliveries and $.624 for deliveries in the

Production Zones, as Midwest and Production Zones are defined in

Section 21.7 of these General Terms and Conditions, Natural shall

make refunds with applicable interest to any Shipper which has