National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 09/30/2006, Docket: RP06-291-000, Status: Effective

Second Revised Sheet No. 367 Second Revised Sheet No. 367 : Effective

Superseding: First Revised Sheet No. 367

GENERAL TERMS AND CONDITIONS

11. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL

11.1 Eligible Service Agreements

Unless Transporter and Shipper expressly agree otherwise in

Shipper's service agreement, this Section 11 shall apply only to

(a) long-term service agreements under the FT, EFT, FST, FT-S, ESS,

and FSS Rate Schedules at the applicable Maximum Rates (but not

those agreements excluded by Section 26.5 or Section 36 of these

General Terms and Conditions) or (b) long-term service agreements

under said rate schedules at discounted or negotiated rates entered

into prior to March 27, 2000. (Agreements within the scope of

clauses (a) or (b) will be referred to as a "Qualifying

Agreements").

To the extent a Shipper holding a Qualifying Agreement satisfies

the bid matching requirements of this Section 11 or Transporter and

Shipper reach agreement as contemplated by Section 11.7, such

Shipper may retain its capacity and continue to receive firm

service for which Transporter or Shipper has served notice of

termination. If Transporter receives one or more acceptable bids

for such capacity and Shipper does not satisfy the bid matching

requirements of this Section 11 or if Transporter does not receive

any acceptable bids for such capacity and Transporter and Shipper

do not reach agreement as contemplated by Section 11.7, Shipper

shall no longer have, as of the effective date of Transporter's or

Shipper's notice of termination, rights under the Qualifying

Agreement and Transporter shall have all necessary abandonment

authorizations under the Natural Gas Act. Service agreements that

are not Qualifying Agreements ("Non-Qualifying Agreements") are not

subject to the abandonment protection of this Section 11. Upon

termination of a Non-Qualifying Agreement, Transporter shall have

all necessary abandonment authorization under the Natural Gas Act

effective as of such termination date. For purposes of this

Section 11, the term "long-term service agreement" shall include

any service agreement with a primary or extended term of one (1)

year or longer. Where Transporter and a shipper under a Non-

Qualifying Agreement agree that this Section 11 applies to such

agreement, the parties may agree to limit the applicability of

Shipper's Right of First Refusal ("ROFR") under this section in

certain respects; for example, to circumstances where Transporter

initiates the termination of the agreement, or to a single ROFR

exercise as of the end of the primary term of the service

agreement.