National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 01/01/2002, Docket: RP00-399-007, Status: Effective

Sub. Second Revised Sheet No. 386 Sub. Second Revised Sheet No. 386 : Effective

Superseding: First Revised Sheet No. 386

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

14.8 Transportation Balancing Fee and Imbalance Penalties

(a) For any month that a Shipper's Cumulative Monthly Imbalance

exceeds one MITL, a Transportation Balancing Fee will be

charged on the amount in excess of this tolerance. This fee

per Dth shall be equal to (i) one-twelfth (1/12) the maximum

ISS Injection Charge for positive imbalances or (ii) 365/12

times the maximum IAS usage charge for negative imbalances,

and in either case shall apply regardless of the imbalance

resolution method elected by Shipper under Section 14.9 below.

If the Daily Shipper Imbalance is positive and exceeds one

DITL during any day that an Injection Restriction Advisory (as

defined below) is in effect, the Shipper will be charged an

Imbalance Penalty equal to the maximum ISS Injection Charge.

If the Daily Shipper Imbalance is negative and exceeds one

DITL during any day that a Cold Weather Advisory (as defined

below) is in effect, the Shipper will be charged an Imbalance

Penalty equal to 365 times the maximum IAS usage charge.

For purposes of this Section 14.8, Transporter may issue a

Cold Weather Advisory on any day that the mean temperature

forecast by Transporter's contracted weather service, for

either Erie, Pennsylvania or Buffalo, New York is at or below

10 Degrees Fahrenheit. Transporter may issue an Injection

Restriction Advisory on any day that the "Operationally

Available Quantity" for Transporter's Excess Injection into

Storage, as posted on the "Operationally Available Capacity"

page of Transporter's Web Site is zero (0).

The Transportation Balancing Fee and Imbalance Penalty will be

included in Shipper's regular bill for transportation

services, and will be subject to all payment and collection

requirements applicable to that bill.

(b) Crediting of Penalties and Certain Fees in Excess of Costs

Subsequent to each Annual Billing Period, Transporter shall

compare the Creditable Penalties, as defined below,

attributable to such period, with the Incremental Costs, as

defined below, attributable to such period. If such Creditable

Penalties exceed such Incremental Costs, Transporter shall

credit the difference (hereinafter "Net Creditable Penalties")

to its EFT, FT, FST and FT-S shippers in accordance with the