National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 402 Original Sheet No. 402 : Effective

GENERAL TERMS AND CONDITIONS

16. CURTAILMENT (Cont'd)

16.1Curtailment of Transportation Capacity

If, on any day, Transporter determines that the capacity of its

system, or any portion thereof, including the points at which

gas is tendered for transportation or delivered by Transporter,

is insufficient to serve all transportation requirements which

are otherwise scheduled for such day, capacity which requires

allocation shall be allocated in a manner which results in

curtailment of capacity, to zero (0) if necessary,

(i) first to Hub Service under the W-1 Rate Schedule subject

to service agreements specifying a discounted rate, begin-

ning with the service(s) subject to the largest dis-

count(s), and proceeding in reverse order according to the

amount of the discount(s), capacity to be allocated pro-

rata among equally discounted services;

(ii)second, to quantities scheduled pursuant to Subsection 3.2

of the W-1 Rate Schedule;

(iii)third, to Hub Service under the P-1 or P-2 Rate Schedule

subject to service agreements specifying a discounted rate

for the First Day, beginning with the service(s) subject

to the largest discount(s) and proceeding in a reverse

order according to the amount of the discount(s), capacity

to be allocated pro-rata among equally discounted

services;

(iv)fourth, to quantities scheduled pursuant to Subsection 3.2

of the P-1 or P-2 Rate Schedule;

(v) fifth, to Hub Service under the IR-1 or IR-2 Rate

Schedule, subject to service agreements specifying a

discounted rate, beginning with the service(s) subject to

the largest discount(s) and proceeding in a reverse order

according to the amount of the discount(s), capacity to be

allocated pro-rata among equally discounted services;