National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 08/01/1993, Docket: RS92- 21-004, Status: Effective

Sub. Original Sheet No. 165 Sub. Original Sheet No. 165 : Superseded

GENERAL TERMS AND CONDITIONS

12. UPSTREAM CAPACITY (Cont'd.)

(d) When an increment of upstream capacity is rejected by a

former RQ or CD customer (either affirmatively or by

failing to execute necessary documentation), Transporter

shall give notice on its Electronic Bulletin Board of

such rejection. For a period of three (3) business days

following any such notice, another former RQ or CD

customer may notify Transporter of its desire to

exchange its right to take assignment of an equal amount

of other upstream capacity for the rejected capacity,

and to exchange corresponding receipt entitlements under

Transporter's EFT Rate Schedule. Upon the conclusion of

such three (3) business day period, the former RQ or CD

customer making such notification shall acquire the

right to take assignment of the requested increment of

upstream capacity, the upstream capacity exchanged

therefor shall be deemed to have been rejected by such

customer, and the EFT receipt entitlements of the

requesting and rejecting customer shall be adjusted

accordingly. The rejection of an increment of capacity

by a former RQ or CD customer shall be deemed to include

the customer's consent to such a corresponding

adjustment of EFT receipt entitlements. If more than

one former EFT customer requests assignment of the same

increment of rejected upstream capacity, the right to

take assignment of such capacity shall be apportioned

among the requesting customers in proportion to their

respective Contract Maximum Daily Quantities under the

EFT Rate Schedule. All exchanges of upstream capacity

and EFT receipt entitlements consummated in accordance

with the procedures set forth in this Subsection 12.3(d)

between April 1, 1993 and August 1, 1993 shall be

effective as of August 1, 1993.

12.4 Subsequent Assignments. Following the initial assignments

described in Subsection 12.3 of this Section 12, Transporter

shall give notice on its Electronic Bulletin Board of any

remaining upstream capacity that is available for permanent

assignment as of August 1, 1993. Upstream capacity will be

assigned on a first-come first-served basis according to the

date Transporter receives from a requesting assignee a request

describing the capacity described, which must include evidence