National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 04/01/2007, Docket: RP06-393-004, Status: Effective

Second Revised Sheet No. 385 Second Revised Sheet No. 385 : Effective

Superseding: First Revised Sheet No. 385

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

14.7 Calculation of Monthly and Daily Imbalances

A Shipper's imbalance under a particular service agreement is

always equal to the amount of gas received by Transporter for that

Shipper's account under that agreement, less the amount

Transporter delivers to that Shipper under that agreement, and

less applicable Fuel and Company Use retention and Transportation

LAUF retention, adjusted for imbalance payback and relief.

Imbalances can be either positive (adjusted receipts for Shipper's

account exceed deliveries to Shipper) or negative (deliveries to

Shipper exceed adjusted receipts for Shipper's account).

Each month, Transporter will calculate the imbalance for each

agreement (from among all the receipt and delivery points used

under that agreement) and aggregate those calculations into that

agreement's Monthly Imbalance. The Monthly Imbalances for all the

agreements in effect for a single Shipper are set off against each

other to calculate the Monthly Shipper Imbalance. Each Monthly

Shipper Imbalance is aggregated with any cumulative unresolved

imbalances from previous months into that Shipper's Cumulative

Monthly Imbalance. The Cumulative Monthly Imbalance is compared

to a Monthly Imbalance Tolerance Level ("MITL"), which is equal to

5% of the accumulated daily scheduled receipts for the month under

all that Shipper's agreements, but at least 1000 Dth.

If a Shipper indicates its consent in writing delivered to

Transporter, or by E-Mail message, Transporter will transmit a

Shipper's Monthly Imbalance Statement by E-Mail message.

For each day that an Injection Restriction Advisory or Cold

Weather Advisory (as described in Section 14.8) is in effect,

Transporter will calculate the imbalance for each agreement (from

among all the receipt and delivery points used under that

agreement) and aggregate these calculations into that agreement's

Daily Imbalance. The Daily Imbalances for all the agreements in

effect for a single Shipper are set off against each other to

calculate the Daily Shipper Imbalance. The Daily Shipper

Imbalance is compared to a Daily Imbalance Tolerance Level

("DITL"), which is equal to 5% of the scheduled receipts for the

day under all that Shipper's agreements, but at least 1,000 Dth.