National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 04/21/2010, Docket: RP10-504-000, Status: Effective

Second Revised Sheet No. 121 Second Revised Sheet No. 121

Superseding: Original Sheet No. 121

ESS RATE SCHEDULE

Enhanced Storage Service

5. STORAGE FIELD LOSSES

In the event of a loss of gas from one or more storage fields utilized

by Transporter resulting from force majeure, such loss shall be

allocated among Transporter and each Shipper receiving service under

the FSS, SS-1, SS-2, ESS or ISS Rate Schedule in proportion to the

quantities of gas (excluding base gas) of each in storage immediately

prior thereto as reasonably determined by Transporter, and if such

extraordinary loss exceeds the top gas balances of Transporter and all

such Shippers, such excess will be deemed to be from Transporter's

base gas. Losses of gas from storage fields utilized by Transporter

that are not losses resulting from force majeure, as defined below,

will be deemed to be gas from Transporter's top gas balance, and, to

the extent such losses exceed Transporter's top gas balance, such

excess will be deemed to be from Transporter's base gas. For purposes

of this Section 5, a loss of gas resulting from force majeure is a

loss caused by any acts of God, strikes, lockouts, acts of the public

enemy, wars, blockades, insurrections, riots, epidemics, landslides,

lightning, earthquakes, fires, storms, floods, washouts, arrests and

restraints of rulers and peoples, civil disturbances, explosions,

breakage or accident to machinery or lines of pipe, line freeze-ups,

or similar causes.

Shipper is placed on notice that Transporter may recognize storage gas

losses for rate and accounting purposes. Such losses shall be valued

at the current replacement cost of gas. After accounting recognition

of any such loss, Transporter shall record and maintain a regulatory

asset account which shall be maintained until Transporter's next

general rate change filing under Section 4 of the Natural Gas Act. In

any of Transporter's general rate change filings, Transporter may

propose to amortize storage gas losses through its base rates. This

provision shall apply to storage gas losses incurred but unamortized as

of the date upon which this provision becomes effective, and to those

incurred after that date.