National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 04/01/2007, Docket: RP06-393-004, Status: Effective

First Revised Sheet No. 488 First Revised Sheet No. 488 : Effective

Superseding: Sub. Original Sheet No. 488

 

GENERAL TERMS AND CONDITIONS

 

 

40. OPERATIONAL PURCHASES AND SALES OF GAS

 

40.1 Transporter may purchase and/or sell gas to the extent necessary

to balance quantities retained pursuant to its Fuel and Company

Use retention, Transportation LAUF retention, Storage LAUF

retention or Surface Operating Allowance with Transporter's

actual compressor fuel use, lost and unaccounted-for quantities

and company-use. Any such sales will be made on an unbundled

basis at interconnections between Transporter and other

interstate pipelines; and any such sales or purchases will have a

lower scheduling priority than firm transportation or firm

storage service.

 

40.2 Transporter will make a website posting of each such proposed

purchase or sale which shall include at a minimum (a) the level

of daily quantities and whether the purchases or sales shall be

made on a firm or interruptible basis; (b) the requested

commencement date and term of the purchase or sale; and (c) the

point(s) of receipt and/or delivery. The posting will solicit

bids within a stated bidding period. Transporter will apply

nondiscriminatory credit standards in evaluating bids.

Transporter will award the purchase to the bidder(s) submitting

the lowest bid(s) and the sale to the bidder(s) meeting the

applicable credit standards that submit the highest bid(s). If

stated in the posting, Transporter may reserve the right to

withdraw its offering for operational, economic, or other

reasons.

 

40.3 Transporter will file a semi-annual report on or before February

1st and August 1st each year showing the purchases and sales of

gas under this provision for the 6-month periods ending the

preceding December 31st and June 30th, respectively. The report

will include (a) the date of each purchase or sale;

(b) quantities; (c) the purchase or sales price; (d) the costs

and revenues generated by such purchases and sales; (e) the

accounting treatment for such costs and revenues; (f) an

itemization of all hedging activities undertaken by Transporter

associated with such purchases and sales; and (g) the source of

the gas (i.e., any authorized sale of base gas, payback/cashout

replacement or efficiency gas).

 

40.4 This Section 40 does not apply to purchases and sales undertaken

to resolve shipper imbalances, which are subject to Section 14 of

these General Terms and Conditions.