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. 514 Original Sheet No. 514 : Pending

GENERAL TERMS AND CONDITIONS

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38.9 ACCOUNTING

A separate account by customer of collections and

applicable interest under Sections 38.4, 38.5, 38.6, 38.7, 38.11

and 38.12 shall be maintained by Natural.

38.10 RECONCILIATION

(a) (1) Natural shall prepare and file with the

Commission and provide to Natural Customer Group members a

Reconciliation Report relating to collections from Natural

Customer Group members only within nine (9) months after the

earlier of: (i) the end of the forty-eight (48) month collection

period defined in Section 38.4(a); or (ii) the date billings by

Natural cease under Section 38.4(a). Such report shall compare

total collections hereunder from Natural Customer Group members

with the amounts allocated to the Natural Customer Group under

Section 38.4, reflecting Supply Realignment Costs (including Coal

Gas costs) determined as of the date of the reconciliation. To the

extent such Supply Realignment Costs have not actually been paid

by Natural at the time of the reconciliation, Natural shall

reflect an amount for such remaining Supply Realignment Costs

determined by discounting the outstanding obligation to its

present value utilizing the interest rate in subsection (a)(3)(ii)

and employing estimates to the extent necessary.

(2) If the amount allocated to Natural Customer

Group members exceeds $408 million (as adjusted under Section

38.4), Natural shall retain all collections from the Natural

Customer Group. If the amount so allocated is less than $408

million (as adjusted under Section 38.4), Natural shall refund the

difference between the amount actually collected from Natural

Customer Group members under Section 38.4 and the allocated amount

(as adjusted) plus applicable interest. Allocation of such refunds

among Natural Customer Group members shall be based on the actual

collections hereunder from each Natural Customer Group member.