National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 10/14/2004, Docket: RP04-591-000, Status: Effective

First Revised Sheet No. 475 First Revised Sheet No. 475 : Effective

Superseding: Original Sheet No. 475

GENERAL TERMS AND CONDITIONS

32. TRANSFERS OF STORAGE BALANCE (Cont'd)

(d) Any time during a Withdrawal Period that the aggregate

Storage Balance of all Shippers under the ESS and FSS

Rate Schedules is less than 40% of the aggregate MSQ of

all Shippers under the ESS and FSS Rate Schedules, then

Transporter shall post on its Web Site a critical system-

wide notice to that effect.

Any time during the Withdrawal Period and prior to the

posting of such notice, transferred inventory will

increase the Storage Balance of the Receiving Shipper,

and decrease the Storage Balance of the Transferring

Shipper, for all purposes. After the posting of this

notice and until the end of the Withdrawal Period in

which the transfer occurs, Transferring Shipper and

Receiving Shipper shall be entitled to no greater

withdrawal entitlement in the aggregate than the

Transferring Shipper would have had absent the transfer,

including delivery obligations that are assumed by

avoiding or delaying the imposition of a ratchet.

32.3 All provisions of Section 13 of these General Terms and Conditions

shall apply to Customer Nominations to transfer Storage Balance

under this Section 32, except that Transporter may reject a

nominated transfer of Storage Balance as described in this Section

32.3. Transporter may reject a nominated transfer of Storage

Balance (and notify nominating Shippers) within the time period and

in the manner by which the nominating Shipper must receive notice

of its scheduled quantities pursuant to Section 13.1(c) of the

General Terms and Conditions of this Tariff. To reject a nominated

transfer of Storage Balance, Transporter must determine, in its

reasonable discretion (in which Transporter may assume that

Receiving Shipper will subsequently nominate to withdraw the

transferred Storage Balance and ship it to Receiving Shipper's

primary delivery point or points under its firm transportation

agreement, if any) that:

(a) the nominated transfer would cause the Storage Balance of

Receiving Shipper to exceed that Shipper's MSQ;