National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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

Original Sheet No. 159B Original Sheet No. 159B : Effective

GENERAL TERMS AND CONDITIONS

11. PROCEDURES FOR AVOIDANCE OF PREGRANTED ABANDONMENT

11.1 Eligible Service Agreements. To the extent a Shipper satisfies

the bid matching requirements of this Section 11 or Transporter

and Shipper reach agreement as contemplated by Section 11.6, such

Shipper may retain its capacity and continue to receive firm

service under a long-term firm service agreement under the FT,

EFT, FST, ESS or FSS Rate Schedules for which Transporter has

served notice of termination. If Transporter receives one or

more acceptable bids for such capacity and Shipper does not

satisfy the bid matching requirements of this Section 11 or if

Transporter does not receive any acceptable bids for such

capacity and Transporter and Shipper do not reach agreement as

contemplated by Section 11.6, Shipper shall no longer have, as of

the effective date of Transporter's notice of termination, rights

under the long-term firm service agreement for which Transporter

has served notice of termination and Transporter shall have all

necessary abandonment authorizations under the Natural Gas Act.

This Section 11 is not applicable and Shipper shall have no

rights hereunder to the extent the long-term service agreement is

terminated by Shipper and Transporter shall have all necessary

abandonment authorization under the Natural Gas Act. Short-term

service agreements under the FT, EFT, FST, FSS and ESS Rate

Schedules are not subject to the abandonment protection of this

Section 11. Upon termination of a short-term service agreement,

Transporter shall have all necessary abandonment authorization

under the Natural Gas Act effective as of such termination date.

For purposes of this Section 11, the term "long-term service

agreement" shall include any service agreement with a primary or

extended term of one (1) year or longer, and the term "short-term

service agreement" shall include any service agreement with a

primary or extended term of less than one (1) year.