National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP97- 1-004, Status: Effective

1st Rev. Third Revised Sheet No. 159 1st Rev. Third Revised Sheet No. 159 : Effective

Superseding: Third Revised Sheet No. 159







Shipper but will otherwise have no further obligations with

regard to the Existing Shipper's Notice. If the Potential or

Prearranged Shipper satisfies Transporter's applicable tariff

provisions governing shipper eligibility and its bid is accepted

by Transporter, Transporter will execute the necessary service

agreements with the Potential or Prearranged Shipper, which shall

hereinafter be referred to as the Replacement Shipper.


10.7 Obligations of Existing Customer


The service agreements of the Existing Shipper releasing capacity

will remain in full force and effect, with a portion of the

proceeds attributable to any release credited to the Existing

Shipper's bill as provided in Section 10.9 hereof. The Existing

Shipper shall remain liable to Transporter under the terms of its

service agreement with Transporter during and irrespective of any

assignments of the rights and obligations under the service

agreement for all reservation, demand and capacity charges, and

any surcharges applicable to such charges, but excluding

commodity or usage charges and imbalance penalties.


Where an Existing Shipper proposes to release capacity to a

Replacement Shipper for the entire remaining term of the

applicable service agreement between Transporter and the Existing

Shipper, the Existing Shipper may request Transporter to release

the Existing Shipper from any further obligations to Transporter

upon the effectiveness of the service agreement between Trans-

porter and the Replacement Shipper. Transporter shall be under

no obligation to grant such requests unless the Replacement

Shipper (i) agrees to pay for the released capacity of Trans-

porter's maximum rates and (ii) demonstrates to Transporter that

it possesses sufficient financial stability, or if it provides

such security as is necessary, to make Transporter reasonably

secure that the Replacement Shipper will pay for service on a

timely basis throughout the remaining term of the service

agreement between Transporter and the Existing Shipper. Trans-

porter shall exercise its discretion under this provision in a

non-discriminatory manner.