National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 09/30/2006, Docket: RP06-291-004, Status: Effective

Sub. Original Sheet No. 480 Sub. Original Sheet No. 480 : Pending

GENERAL TERMS AND CONDITIONS

36. RESERVATION OF CAPACITY FOR EXPANSION PROJECTS

Transporter may elect to reserve, for future expansion projects,

unsubscribed firm capacity or capacity under expiring or terminating

firm transportation or firm storage service agreements where such

agreements are Non-Qualifying Agreements under Section 11 of these

General Terms and Condition, or Shipper does not exercise its Right of

First Refusal under such section. Transporter may only reserve capacity

for a future expansion project for which an open season has been held or

will be held within one (1) year of the date Transporter posts such

capacity as being reserved. If Transporter elects to reserve capacity

for future expansion projects under this Section, such capacity may be

reserved for up to one year prior to Transporter filing for certificate

approval for the proposed expansion under Section 7(c) of the Natural

Gas Act, and thereafter until such expansion is placed into service.

Transporter shall, on a limited-term basis up to the in-service date of

the expansion project, make available any capacity reserved under this

section in accordance with Section 26 of these General Terms and

Conditions.

A service agreement for capacity available on a limited-term basis up to

the in-service date of the expansion project shall not be a Qualifying

Agreement for purposes of Section 11 of these General Terms and

Conditions (Pregranted Abandonment and Right of First Refusal).

Prior to reserving capacity for future expansion projects under this

section, Transporter shall first make such capacity available pursuant

to Section 11 or Section 26 of these General Terms and Conditions.

Capacity that remains available after the posting and bidding procedure

in accordance with Section 26 may be reserved by Transporter by means of

a posting on Transporter's Web Site which shall include, but not be

limited to:

(i) A description of the expansion project for which the capacity will

be reserved;

(ii) The total quantity of capacity to be reserved;

(iii) The location of the proposed reserved capacity on Transporter's

system;

(iv) When Transporter held or anticipates holding an open season or

otherwise posting the capacity for bidding in connection with the

expansion project;