National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 08/10/2008, Docket: RP08-442-000, Status: Effective

Original Sheet No. 391A Original Sheet No. 391A

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

(iii) for each issue of NGIW that contains a table of spot

gas prices for the applicable month, the average price

shown for spot gas prices delivered to Texas Eastern

in South Texas.

The Transco South Texas Index Price shall be computed by

averaging:

(i) an average of the "midpoint" price for each reported

day of the month applicable to gas delivered to Transco

(Zone 1), as reported in Platt's, in a table entitled

"Daily Prices of Spot Gas Delivered to Pipelines";

(ii) the "index" price applicable to gas delivered to

Transco (Zone 1), as reported in Platt's, in a table

entitled "Prices of Spot Gas Delivered to Pipelines",

as of the first day of the month; and

(iii) for each issue of NGIW that contains a table of spot

gas prices for the applicable month, the average price

shown for spot gas prices delivered to Transco at

Station 30 in South Texas.

Changes in the name, format or other method of reporting by

Platt's or NGIW that do not materially affect the content shall

not affect their use hereunder. If any of the reported prices

used in the calculation of the SWI become unavailable,

Transporter will file to change this section and may, at its

discretion, select a substitute representative price in the

interim, subject to refund.

WAT = weighted average firm transport cost per Dth from the

southwest to Transporter's system. The weighting is based on

the ratio of gas volumes Transporter was receiving from its

upstream pipeline suppliers at the time Transporter unbundled

its sales services, as follows: