National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 12/01/1995, Docket: RP96- 29-001, Status: Effective

Substitute Original Sheet No. 237.13 Substitute Original Sheet No. 237.13 : Superseded

GENERAL TERMS AND CONDITIONS

26. PROCEDURES FOR ALLOCATING FIRM CAPACITY (cont'd)

(b) Rate bid.

In the event Transporter receives two or more bids of

equal value, then under method (a) the best bid shall

be the bid with the shortest term and under method

(b) the best bid shall be the bid with the longest

term.

26.3 In processing requests for service received within the posting

period, Transporter shall allocate capacity among shippers

according to the present values (where method (a) is employed)

or rates (where method (b) is employed) of the bids received.

A ratable allocation, based on the quantities requested, shall

be made among shippers that submit bids that are equal with

respect to both value and term.

26.4 Transporter's posting shall also specify the number of days

within which shippers must execute and return service

agreements or precedent agreements once Transporter has

allocated available capacity in accordance with Section 26.3.

If a Shipper fails to execute and return the agreement tendered

by Transporter within such specified period, the capacity

allocated to that Shipper will be reallocated among the

remaining shippers requesting the posted capacity during the

posting period, in accordance with Section 26.3.

26.5 If some or all of the posted capacity remains available

following the posting period, Transporter may, in its

discretion, establish additional posting periods. Requests for

firm service that are received by Transporter outside of an

established posting period shall be processed on a first-come,

first-served basis in accordance with the applicable rate

schedule, subject to Section 26.6.

26.6 If Transporter receives a request for firm service (other than

a backhaul service) that requires capacity that exists on

Transporter's system, but has not been disclosed to shippers

pursuant to Section 9 of these General Terms and Conditions,

Transporter shall solicit service requests for such capacity,

and shall allocate such capacity in accordance with this

Section 26. In such case, the request for capacity that had

not been disclosed shall be considered to have been received in

response to the posting and during the posting period.