National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 04/01/1997, Docket: RP97- 1-004, Status: Effective

Original Sheet No. 159A Original Sheet No. 159A : Effective

GENERAL TERMS AND CONDITIONS

10. CAPACITY REALLOCATION (Cont'd)

10.8 Rights and Obligations of Replacement Shippers.

Once the Replacement Shipper enters into a service agreement with

Transporter, the Replacement Shipper becomes an Existing Shipper

like any other Shipper and is subject to the provisions set forth

in this FERC Gas Tariff including all requirements concerning

nominations and scheduling. In addition, the Replacement Shipper

as an Existing Shipper (hereinafter called a "Secondary Existing

Shipper") may also release its capacity pursuant to this section.

10.9 Billing Adjustments

Transporter shall credit the bill of the Existing Shipper with

any reservation, demand or capacity charges (including surcharges

thereon) billed to a Replacement Shipper utilizing capacity

released by the Existing Shipper; provided, however, that should

a Replacement Shipper (including a Replacement Shipper of any

Secondary Existing Shipper) default on its obligation to make

timely payment for the charges billed by Transporter, such credit

shall be reversed, as of the date the credit was made, and the

Existing Shipper shall be liable for such charges, together with

interest as set forth in Section 5.4 of these General Terms and

Conditions. The bill of the Existing Shipper shall be credited

with any reservation, demand or capacity charges (including

surcharges thereon) received by Transporter subsequent to the

reversal of such credit.

10.10 Marketing Assistance

If the Existing Shipper requests the assistance of Transporter's

Interstate Marketing Department in locating a replacement

shipper, a representative from such department shall contact the

Existing Shipper and discuss the services that are available at

such time and the fees for such services. If the Existing

Shipper and Transporter enter into a mutually agreeable marketing

assistance arrangement, Transporter shall bill the Existing

Shipper according to the terms of such agreement.