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. 166 Sub. Original Sheet No. 166 : Superseded

GENERAL TERMS AND CONDITIONS

12. UPSTREAM CAPACITY (Cont'd.)

satisfactory to Transporter that the requesting assignee has

received all consents and approvals as are necessary to

effectuate an assignment meeting the requirements of

Subsection 12.2 of this Section 12.

12.5 Purchases Under Remaining Bundled Sales Contracts. If, upon

August 1, 1993, Transporter remains a bundled, firm sales

customer of an upstream pipeline such bundled, firm sales

contract or portion thereof shall not be made available for

assignment pursuant to Subsection 12.4 of this Section 12, but

shall be retained by Transporter until assignment to its

former RQ and CD customers can be arranged or until the

bundled sales contract is converted into a firm transportation

and/or firm storage contract, whereupon Transporter's former

RQ and CD customers may again seek an assignment of capacity

as set forth in Subsection 12.3 of this Section 12. Prior to

the assignment or conversion of the capacity associated with

such bundled sales contract, the firm transportation service

provided by Transporter to Shipper shall include the sale by

Transporter to Shipper of the gas purchased by Transporter

from the upstream pipeline. Such sale shall occur at the

interconnection(s) between Transporter and the upstream

pipeline. For such sales service, Transporter shall bill to

its former RQ and CD customers, on an as-billed basis, such

amounts as are necessary to fully recover the costs incurred

by Transporter under such upstream pipeline contract,

including all surcharges, refunds and other adjustments,

regardless of when imposed or authorized. Demand and other

fixed charges billed by the pipelines listed below shall be

allocated among its former RQ and CD customers according to

the percentages set forth in the table below. Upon the

request of a former RQ or CD customer, Transporter shall

arrange for the purchase of quantities of gas from one or more

of the pipelines listed below, up to the quantities shown

below, and the delivery of such quantities at the customer's

receipt point(s) into Transporter's system. Commodity and

other variable charges billed by the pipelines listed below

shall be allocated among Transporter's former RQ and CD

customers in proportion to the quantities purchased by

Transporter at the request of each customer.