National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 02/25/2009, Docket: RP09-269-000, Status: Effective

Third Revised Sheet No. 356 Third Revised Sheet No. 356

Superseding: Second Revised Sheet No. 356

GENERAL TERMS AND CONDITIONS

10. CAPACITY RELEASE

This Section 10 sets forth a firm capacity release mechanism pursuant to

which Existing Shippers can voluntarily release and assign all or part

of their firm capacity rights to a Potential Shipper or a Prearranged

Shipper that wants to obtain that firm capacity. Existing Shippers may

release and assign their firm capacity on Transporter only under this

Section 10 of these General Terms and Conditions. The capacity release

timeline set out in this Section 10 is applicable to all parties

involved in the capacity release process, but is applicable only if

(1) all information provided by the parties is valid, (2) and the

Replacement or Prearranged Shipper is a qualified pre-approved bidder

pursuant to Section 10.4(a) hereof, (3) the Existing Shipper does not

request a release from further obligations under its service agreement

pursuant to Section 10.7 hereof, and (4) there are no other special

terms or conditions of the release, except for terms and conditions

pertaining to an asset manager's obligation to deliver gas to, or

purchase gas from, the Existing Shipper, pursuant to Section

10.2(a)(xv). Transporter will support volumetric commitments by fully

accounting for volumetric and reservation components consistent with the

rules and regulations enunciated by the Commission. Transporter will

support the upload of prearranged deals and the function of reputting by

releasing Shippers.

Except as otherwise specifically provided, written notices described in

this Section 10 must be addressed to:

National Fuel Gas Supply Corporation

Transportation and Exchange Department

Building #5

365 Mineral Springs Road

Buffalo, New York 14210

Notices via facsimile transmission described in this Section 10 must be

transmitted to (716) 827-2381.

10.1 Capacity Eligible For Release:

Shippers under the FT, EFT, FST, FT-S, FSS and ESS Rate Schedules

are permitted to release their firm capacity in whole or in part,

on a permanent or temporary basis, and on a recallable or non-

recallable basis. Such Existing Shipper may propose an entity

(herein called Prearranged Shipper) to obtain its released capacity

from Transporter.