North Penn Gas Company

First Revised Volume No. 1

Effective Date: 04/01/1991, Docket: RP91-111-000, Status: Effective

First Revised Sheet No. 15H(1)(a) First Revised Sheet No. 15H(1)(a) : Effective

Superseding: Original Sheet No. 15H(1)(a)

18.1 ALLOCATION METHODOLOGY

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Compression Costs and LNG Costs billed to Seller by Tennessee and

CNG will be allocated to Buyer for billing purposes using the

same allocation procedure to the extent possible utilized by the

pipelines in allocating costs to their customers.

Any refunds received by Seller attributable to these charges, or

any additional charges to Seller will be allocated to Buyer using

the same allocation procedure to the extent possible as utilized

by the pipeline in allocating costs or refunds to their

customers.

The allocation factors to be used for allocating the total

aggregate principal amount, the monthly principal amount and

additional costs or refunds to each buyer are reflected on Sheet

No. 15H(6).

18.2 METHOD OF PAYMENT

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Seller shall include as a separate item on each Buyer's monthly

bill each month, rendered pursuant to Section 5 of the General

Terms and Conditions of this Tariff, the surcharge for such Buyer

calculated in accordance with the methodology described in

Section 6 of the General Terms and Conditions of this Tariff.

All payments due from Buyer not received by Seller, on or before

the due date of the payment, shall bear interest in accordance

with Section 6 of the General Terms and Conditions of this

Tariff.