National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 04/01/1997, Docket: RP97-201-000, Status: Effective

Third Revised Sheet No. 206 Third Revised Sheet No. 206 : Superseded

Superseding: First Revised Sheet No. 206

GENERAL TERMS AND CONDITIONS

15. UNAUTHORIZED TENDERS AND RECEIPTS (Continued)

15.4 Indemnification and Waiver

Shipper shall indemnify Transporter against, hold it harmless

from, and undertake and defense of Transporter with respect to

any and all claims, losses, damages, expenses and injuries

arising from an unauthorized tender or receipt by Shipper.

Shipper waives any and all claims and demands against Transporter

arising from an unauthorized tender or receipt by another

Shipper, other than claims based on a Shipper's loss of gas

supply due to Transporter's negligence or willful misconduct.

16. CURTAILMENT

Following the scheduling of services, Transporter shall have the right

to curtail services on a system-wide basis or segment-by-segment basis

(i) as a result of conditions of force majeure, as described at

Section 8.1 of these General Terms and Conditions, (ii) when

necessary, in Transporter's reasonable judgment, to avert a material

threat to the integrity of its system or to remedy an unexpected loss

of capacity, or (iii) when continuation of service would impair

Transporter's ability to render a service of a higher priority, as set

forth in this Section 16. The allocation procedures and priorities

set forth in this Section 16 shall apply to both system-wide and

segment-by-segment limitations or curtailments, insofar as is

possible.

Transporter will allocate capacity in the manner set forth in this

Section 16 only to the extent it is reasonably practical to do so.

It is recognized that the allocation of Transporter's capacity may be

affected by the capabilities of Transporter's measurement, control and

communication equipment, as it exists from time to time, the opera-

tional requirements of Transporter or by factors beyond the control of

Transporter, including but not limited to variations in the require-

ments or markets served by Transporter.

In the event of a curtailment of service under this provision, Trans-

porter shall provide such notice as is reasonable under the circum-

stances.