National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 10/16/2002, Docket: RP02-547-001, Status: Effective

Sub. Original Sheet No. 366.02 Sub. Original Sheet No. 366.02 : Effective

GENERAL TERMS AND CONDITIONS

10. CAPACITY RELEASE (Cont'd)

defaulting shipper in the sequence of successive releases will

have priority over a Replacement Shipper further from the

defaulting shipper in such sequence). In this case, all

capacity awards derived from the award qualifying for the

highest priority will remain in effect pending and following

execution of the new source agreement between Transporter and

the Replacement Shipper with the highest priority, and such

Replacement Shipper's rights to such capacity will be subject

to the rights included in such other capacity awards.

(f) If Transporter receives more than one timely service request

under this Section 10.8 from qualified Replacement Shippers in

the situation described in Subsection 10.8(c)(v), with the

same priority as determined by Subsection 10.8(e), Transporter

shall allocate capacity among such Replacement Shippers in

proportion to the maximum transportation quantities specified

in such shippers' awards.

(g) If the Replacement Shipper fails to execute and return the

agreement tendered by Transporter within the period of time

specified by Transporter, which period shall be at least five

(5) business days from the time the agreement is forwarded by

Transporter, the Replacement Shipper shall have no further

rights under this Section 10.8. In such case, the formerly

awarded capacity shall be offered to the qualified Replacement

Shipper that submitted a timely service request with the next

highest priority, if any, under the same conditions. In the

absence of other such requests, the capacity shall be posted

and service requests therefor will be solicited in accordance

with Section 26 of these General Terms and Conditions.