Steuben Gas Storage Company

Original Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-177-001, Status: Effective

First Revised Sheet No. 17 First Revised Sheet No. 17 : Effective

Superseding: Original Sheet No. 17

RATE SCHEDULE FS

FIRM STORAGE

(Continued)

7.4 Marketing Fee. Seller may negotiate with Releasing Customer

to market all or a portion of the released capacity to

potential Replacement Customers who, as a result of such

marketing activity, bid for such capacity during the

competitive bidding procedure. If Seller contracts with a

Replacement Customer found by Seller, Seller, with the

agreement of Releasing Customer, shall be entitled to a

marketing fee which will be negotiated between Seller and

Releasing Customer. The basis and method of assessing such fee

shall be subject to negotiations between Seller and Releasing

Customer. Each Replacement Customer found by Seller, pursuant

to Seller's agreement with Releasing Customer concerning a

marketing fee, shall submit with its bid a statement attesting

to Seller's marketing efforts, which efforts shall consist of

more than the simple posting of a notice on Sellers bulletin

board, in connection with such Replacement Customer's decision

to purchase released capacity. Such statement shall constitute

conclusive evidence of Seller's proactive marketing effort

entitling Seller to a marketing fee.

7.5 Term. Any release under this Section 7 for service under Rate

Schedule FS shall be for a maximum term not longer than the

remaining term of the underlying FS Service Agreement. If

capacity is released and the Replacement Customer takes

service under Rate Schedule IS, the minimum term shall be one

month.

7.6 Releasing Customers' Injection/Withdrawal Charges.

Releasing Customers' pricing provisions on any offer to

release pursuant to Section 7.1 and 7.8 hereof must include

Releasing Customers' currently effective Injection Commodity

Charge and Withdrawal Commodity Charge.

7.7 Volumetric Release. Customer may release capacity on a

volumetric basis, provided that:

(a) all requirements and conditions of the release be

specified by the Releasing Customer in the release

notice, including any minimum storage volume requirement,

and

(b) the requirements and conditions specified by Releasing

Customer must meet all of the requirements and conditions

of Seller's Original Volume No. 1 tariff and,