Steuben Gas Storage Company

Original Volume No. 1

Effective Date: 06/27/1996, Docket: CP96- 35-002, Status: Effective

Original Sheet No. 149 Original Sheet No. 149 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

Storage Agreements shall have equal priority as to

service, and shall have priority over interruptible

Storage Services under Rate Schedule IS and Overrun

Service.

10.2 INTERRUPTIBLE AND OVERRUN STORAGE

(a) Priority Of Nominations For Interruptible and Overrun

Service: Seller, in determining the allocation of

interruptible and overrun service capacity on any Day

among Customers under Rate Schedule IS and Rate Schedule

FS, which have nominated quantities of service desired on

such Day, shall be assigned the order of priority of such

service on the basis that the highest rate offered for

such service shall be accorded the highest priority. If

more than one nomination or request for interruptible and

overrun storage on a Day includes an offer of the same

rate, then the order of priority as among such

nominations or requests shall be the same. If capacity is

constrained, service among Customers within the same

priority will be allocated pro rata based upon the

quantities nominated or requested.

(b) A Customer desiring Interruptible or Overrun service

under Rate Schedule IS or Rate Schedule FS in a Month

shall submit to Seller, at least five (5) business Days

prior to the start of such Month, the rate that such

Customer is willing to pay for such service in such

Month. The rate submitted by Customer pursuant to the

above provision shall be used to determine priority among

nominations on each Day of such Month. Once Customer's

nomination is accepted, and priority is assigned thereto

pursuant to this section for such Month, such priority

shall not be changed by the execution of new IS

Agreements during the Month for service under Rate

Schedule IS or the nomination of additional Overrun

Service under Rate Schedule FS or IS.