National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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

First Revised Sheet No. 206A First Revised Sheet No. 206A : Superseded

Superseding: Sub. Original Sheet No. 206A

GENERAL TERMS AND CONDITIONS

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 operational

requirements of Transporter or by factors beyond the control of

Transporter, including but not limited to variations in the requirements

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.

For purposes of this Section 16, a "discounted rate" shall include a

negotiated rate that is less than the maximum rate at the time in

question, and for such negotiated rates, a "discount" shall mean the

difference between the maximum rate and the negotiated rate at such

time.