National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 08/01/1997, Docket: RP97-398-000, Status: Effective

Original Sheet No. 208 Original Sheet No. 208 : Effective

RATE SCHEDULE SS-1

110-DAY UNDERGROUND STORAGE SERVICE

5. CREDIT FOR DEFAULT QUANTITIES (Cont'd.)

"Credit" represents the amount of credit to be applied against Buyer's

payments due to Transporter;

"Buyer's Payments" represents the sum of Buyer's payments to

Transporter in the immediately preceding contract year;

"Default Quantities" represents the sum of Quantities of Gas on each

day of the Injection Season and of the Withdrawal Season in such

contract year;

(a) which were tendered by Buyer and duly requested by Buyer to be

injected or which were in storage and duly requested to be

withdrawn and delivered,

(b) which Transporter was obligated to accept for injection or to

withdraw and deliver under Buyer's effective Underground Storage

Service Agreement, and

(c) which Transporter, by reason of its sole negligence or willful

breach of the terms of service hereunder, failed to accept for

injection or withdraw and deliver prior to the end of such

Injection Season or Withdrawal Season; and

"Buyers Annual Storage Quantity" represents the Annual Storage

Quantity applicable according to Buyer's Underground Storage Service

Agreement as in effect during the applicable contract year; provided

that such credit shall be contingent upon Buyer having used its best

efforts to, as the case may be,

(a) make available for injection, during the remaining portion of

such Injection Season, Quantities of Gas equivalent to the

Default Quantities occurring during such Injection Season, or

(b) accept Quantities of Gas withdrawn from storage, during the

remaining portion of such Withdrawal Season, equivalent to the

Default Quantities occurring during such Withdrawal Season.

Any credit due at the end of the last contract year in which Buyer's

Underground Storage Service Agreement is in effect shall be paid in

cash by Transporter to Buyer. The provisions of this Paragraph 5

shall not in any way affect rights which Buyer has under Paragraph 2

of this rate schedule.