National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

First Revised Sheet No. 452 First Revised Sheet No. 452 : Effective

Superseding: Original Sheet No. 452

GENERAL TERMS AND CONDITIONS

26. PROCEDURES FOR ALLOCATING FIRM CAPACITY (Cont'd.)

In the event Transporter receives two or more bids of equal

value, then under method (a) the best bid shall be the bid with

the shortest term and under method (b) the best bid shall be the

bid with the longest term. Transporter shall base its selection

of method (a) or method (b) upon its assessment of which method

will result in greater revenues for the services associated with

the capacity.

26.3 In processing requests for service received within the posting

period, Transporter shall allocate capacity among shippers

according to the present values (where method (a) is employed) or

rates (where method (b) is employed) of the bids received. A

ratable allocation, based on the quantities requested, shall be

made among shippers that submit bids that are equal with respect

to both value and term.

26.4 Transporter's posting shall also specify the number of days

within which shippers must execute and return service agreements

or precedent agreements once Transporter has allocated available

capacity in accordance with Section 26.3. If a Shipper fails to

execute and return the agreement tendered by Transporter within

such specified period, the capacity allocated to that Shipper

will be reallocated among the remaining shippers requesting the

posted capacity during the posting period, in accordance with

Section 26.3.

26.5 If some or all of the posted capacity remains available following

the posting period, either for an indefinite period or for an

interim period ending with the commencement date of the

service(s) of the shipper(s) submitting the Best Bid(s) during

the posting period ("Interim Period", Transporter may, in its

discretion, establish additional posting periods. Requests for

firm service that are received by Transporter outside of an

established posting period shall be processed on a first-come,

first-served basis in accordance with the applicable rate

schedule, subject to Section 26.6. A service agreement for

capacity available only during an Interim Period shall not be a

Qualifying Agreement for purposes of Section 11 of these General

Terms and Conditions (Pregranted Abandonment and Right of First

Refusal).