National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 08/01/1997, Docket: RP97-398-000, Status: Effective

Original Sheet No. 401 Original Sheet No. 401 : Effective

GENERAL TERMS AND CONDITIONS

16. CURTAILMENT

Following the scheduling of services, Transporter shall have the

right to curtail services on a system-wide basis or segment-by-

segment basis (i) as a result of conditions of force majeure, as

described at Section 8.1 of these General Terms and Conditions, (ii)

when necessary, in Transporter's reasonable judgment, to avert a

material threat to the integrity of its system or to remedy an

unexpected loss of capacity, or (iii) when continuation of service

would impair Transporter's ability to render a service of a higher

priority, as set forth in this Section 16. The allocation proce-

dures and priorities set forth in this Section 16 shall apply to

both system-wide and segment-by-segment limitations or curtailments,

insofar as is possible.

Transporter will allocate capacity in the manner set forth in this

Section 16 only to the extent it is reasonably practical to do so.

It is recognized that the allocation of Transporter's capacity may

be affected by the capabilities of Transporter's measurement,

control and communication equipment, as it exists from time to time,

the operational requirements of Transporter or by factors beyond the

control of Transporter, including but not limited to variations in

the requirements or markets served by Transporter.

In the event of a curtailment of service under this provision,

Transporter shall provide such notice as is reasonable under the

circumstances.

For purposes of this Section 16, a "discounted rate" shall include a

negotiated rate that is less than the maximum rate at the time in

question, and for such negotiated rates, a "discount" shall mean the

difference between the maximum rate and the negotiated rate at such

time.