National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 09/30/2006, Docket: RP06-291-004, Status: Effective

Sub. First Revised Sheet No. 369 Sub. First Revised Sheet No. 369 : Pending

Superseding: Original Sheet No. 369

GENERAL TERMS AND CONDITIONS

11. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL (Cont'd.)

Potential Shippers may revise their bids during the posting period.

Transporter may reject any bid which would require Transporter to

discount below a rate or beyond a discount period agreeable to

Transporter.

Transporter will accept bids from Potential Shippers with respect

to a quantitative portion of Shipper's contract quantity.

When Transporter posts notices of termination of an FSS or ESS

service agreement and an associated FST or EFT service agreement, a

bidder will be permitted to specify that its bid for each

individual service is contingent upon its ability to contract for

its requested capacity under both services.

11.5 Determination of Best Bid

Transporter shall review all bids from Potential Shippers received

pursuant to Section 11.4, which have not been rejected by

Transporter, to determine which bid is the Best Bid(s). For

purposes of this Section 11.5, the "Best Bid(s)" shall be the

bid(s) yielding to Transporter the highest net present value. Net

present value shall be calculated on the basis of the present value

of the Reservation Charge revenues or Storage Capacity Charge and

Demand Charge revenues per unit to Transporter. In making the

determination of net present value Transporter shall apply the same

discount factor to all bids. If Transporter receives two (2) or

more mutually exclusive Best Bids during the posting period that

are not matched by Shipper, Transporter will consider the bid

submitted earliest in time to be the Best Bid.