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. 404 Original Sheet No. 404 : Effective

GENERAL TERMS AND CONDITIONS

16. CURTAILMENT (Cont'd)

16.2Curtailment of Storage Injection and Withdrawal Capacity

(Cont'd)

requirements which are otherwise scheduled to receive service

on 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 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 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 P-1 or P-2 Rate Schedule;

(iii)third, to quantities scheduled for storage 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;

(iv) fourth, to quantities scheduled for storage service pur-

suant to Subsection 3.2 of the IR-1 or IR-2 Rate Schedule;

(v) fifth, to interruptible and overrun services subject to

service agreements specifying a discounted rate, beginning

with the service(s) subject to the largest discount(s),

and proceeding in reverse order according to the amount of

the discount(s), capacity to be allocated among equally

discounted services in accordance with the remaining

provisions of this Subsection 16.2;

(vi) sixth, to quantities scheduled pursuant to the ISS Rate

Schedule, quantities scheduled pursuant to the IAS Rate

Schedule, and authorized overruns under the FSS, SS-1,

SS-2 and ESS rate schedules; and