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. 513 Original Sheet No. 513 : Pending

GENERAL TERMS AND CONDITIONS

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point under Natural's agreement with Dakota) or at the

interconnection between Northern Border and Northern Natural Gas

Company; provided, however, that Natural may auction all or any

portion of the Coal Gas for a period exceeding one month if, in

Natural's reasonable judgment, such an auction would likely reduce

costs. The auction will be conducted pursuant to the procedures

set out in subsection (e) of this Section. If the auction price

for Coal Gas is less than the sum of the cost of the Coal Gas

delivered by Dakota and all transportation costs to Harper, Iowa,

and (if the sale is at a point other than Harper, Iowa) all

transportation costs to such other point of sale (in addition to

the unavoidable fixed costs of transportation to Harper, Iowa),

Natural shall recover this difference (Premium) pursuant to

subsection (c). Unless the sale is made at a point other than

Harper, Iowa, Natural will reserve for itself upstream capacity

sufficient for Natural to move the Coal Gas to Harper, Iowa.

percent (90%) of the Premium allocable to the Natural Customer

Group, G Customers and Other Consenting Customers pursuant to the

procedures set out in Sections 38.4 and 38.5. Natural shall

recover the remainder of the Premium, or that portion thereof

allocable to Assessable Shippers consistent with Section 38.6, as

part of the Demand Surcharge(s) determined under Section 38.6.

Ten percent (10%) of the Premium shall be recoverable under

Section 38.7 of these General Terms and Conditions.

(d) Notwithstanding the foregoing, at any time

Natural and Dakota may reach a mutual agreement for the buyout or

buydown of the Coal Gas Contract. Any such buyout costs are to be

encompassed in the procedures under Sections 38.4 and 38.5 of

these General Terms and Conditions for the Natural Customer Group,

G Customers and Other Consenting Customers, respectively, under

Section 38.6 of these General Terms and Conditions for non-

settling customers and under Section 38.7 of these General Terms

and Conditions for costs allocated to interruptible services. The

procedures under this Section 38.8 shall continue in effect for

determining that portion of Supply Realignment Costs other than

buyout/buydown costs or demand charges associated with Coal Gas

until the Coal Gas Contract terminates or is assigned by Natural.