National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 395 Original Sheet No. 395 : Effective

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

retained by Transporter pursuant to this paragraph and/or the

amount which is owed by Shipper pursuant to this paragraph,

which will be subject to all payment and collection

requirements applicable to that bill.

14.12Imbalance Resolution Methodology Form

Each Shipper must complete and deliver to Transporter the

following form covering all of that Shipper's agreements, to

notify Transporter of that Shipper's choice of methods to

resolve imbalances on that agreement. This Imbalance

Resolution Methodology Form will be due by the earliest day for

which nominations are required under any of Shipper's

agreements. A maximum of one Form per Shipper per month may be

filed. A submitted Form continues in effect unless a

superseding Form is filed. If a Shipper seeks to change its

imbalance resolution methodology from "in kind" to "cash-out",

or from "cash-out" to "in kind", at a time when that Shipper's

Cumulative Monthly Imbalance is other than zero, Transporter

will reject that Imbalance Resolution Methodology Form, and

Shipper will have to submit another form if it wishes to change

its imbalance resolution methodology at a later date. The

following is Transporter's Imbalance Resolution Methodology

Form: