National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 394 Original Sheet No. 394 : Effective

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

posting. Prior to 5:00 p.m. ET of the same day,

Transporter shall notify the bidders who, in the

aggregate, submitted bids which yield the greatest total

price for the total quantity bid upon; provided, however,

Transporter reserves the right to reject all bids. When

the gas is purchased at auction, the buyer must provide

identification of the existing transportation service

agreement with Transporter under which the Buyer shall

nominate, transport and deliver all gas by the end of the

month following the month in which the gas is purchased.

The buyer further agrees that the gas is subject to

Section 14, prospectively from the date of the buyer's

purchase pursuant to this Section 14.10(d). All auction

proceeds shall be handled in accordance with Section

14.10(c) hereof.

14.11 Prior Period Adjustments

If a Prior Period Adjustment (PPA) is to be made (either at the

request of Shipper or at Transporter's initiative), Transporter

will notify Shipper of the amount and nature of the PPA, either

as part of the Monthly Imbalance Statement or in a separate

communication. Shipper has until the end of the month

following the month in which such notification was made to

resolve the PPA in kind by adjusting Shipper's receipts and

deliveries of gas.

If the PPA is not resolved in kind within the required time, a

positive PPA (Shipper has too much gas on Transporter's system)

will be resolved by Transporter's retaining an amount of

Shipper's gas equal to the amount of the PPA, at no cost and

free and clear of all claims by any party. A negative PPA

(Shipper has insufficient gas on Transporter's system) will be

resolved by Shipper's paying to Transporter an amount of money

equal to the amount of the PPA (expressed in dekatherms)

multiplied by the Cash-Out Price applicable to the month which

was adjusted by that PPA. Shipper's regular bill for

transportation services will include the amount of gas