National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Third Revised Sheet No. 407 Third Revised Sheet No. 407 : Effective

Superseding: Second Revised Sheet No. 407

GENERAL TERMS AND CONDITIONS

17. ADJUSTMENTS, SURCHARGES AND NEGOTIATED RATES (Cont'd)

For purposes of Section 11.6 of these General Terms and Conditions

the highest rate that a Shipper must match in order to continue to

receive service is the maximum rate applicable to such service. For

purposes of a release of capacity subject to a negotiated rate,

section 10.4(B) of these general terms and conditions, which provides

that no payments may be made or accepted at rates in excess of

transporter's applicable maximum rates, shall be applicable.

Transporter shall make any filings with the Commission necessary to

effectuate a Negotiated Rate. Transporter shall have the right to

seek in future general rate proceedings discount-type adjustments in

the design of its rates related to services subject to Negotiated

Rates that were converted from pre-existing discount services to

Negotiated Rate services. In those situations, Transporter may seek

a discount-type adjustment based upon the greater of: (a) the

Negotiated Rate revenues received or (b) the discounted tariff rate

revenues which otherwise would have been received.

Transporter and a Shipper may, in connection with their agreement to

a Negotiated Rate, agree upon payment obligations and crediting

mechanisms in the event of capacity releases that vary from or are in

addition to those set forth in Section 10 of these General Terms and

Conditions. Nothing in the foregoing provision, however, shall

authorize Transporter or a Shipper to violate the Commission's policy

with respect to the negotiation of terms and conditions of service.