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. 535 Original Sheet No. 535 : Pending

GENERAL TERMS AND CONDITIONS

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

minimum throughput condition or minimum bill). For capacity

evaluation purposes, the net present value of any such bid for

firm service shall be capped by the net present value of the

maximum applicable reservation rate for such service over the

contract term bid.

49.3 ACCOUNTING FOR COSTS AND REVENUES

The allocation of costs to, and the recording of

revenues from, service at Negotiated Rate(s) will follow Natural's

normal practices associated with all of its services under this

Tariff. Natural will maintain separate records of Negotiated Rate

and Negotiated Rate Formula transactions for each billing period.

These records shall include the volumes transported, the billing

determinants (contract MDQ), the rates charged and the revenue

received associated with such transactions. Natural will

separately identify such transactions in Statements G, I and J (or

their equivalent) filed in any general rate proceeding.

49.4 CAPACITY RELEASE REVENUE

Natural and Shipper may agree hereunder to a

Negotiated Rate or Negotiated Rate Formula which includes payment

obligations or crediting mechanisms in the event of a capacity

release which vary from those set out in Section 19.13 of these

General Terms and Conditions. Nothing in the forgoing sentence,

however, shall authorize Natural or Shipper to violate the

Commission's policy with respect to the negotiation of terms and

conditions of service.