National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 417 Original Sheet No. 417 : Effective

GENERAL TERMS AND CONDITIONS

20. PASS-THROUGH OF FIXED TAKE-OR-PAY SURCHARGE (Cont'd.)

(e) Surcharge Adjustment. A one-time adjustment, to be

recovered in equal monthly installments over a twenty-four

month period, shall be made in the computation of each

customer's Monthly Surcharge Amount to reflect the impact

of Seller's allocation mechanism on Shipper's share of

Seller's take-or-pay costs, allocated under this Section

20 of the General Terms and Conditions to Seller's FERC

Gas Tariff, First Revised Volume No. 1 as Section 20

existed in Seller's filing on June 21, 1991 in Docket No.

RP91-47-000, et al. This one-time adjustment caused a

credit or debit in the computation of Shippers' Monthly

Surcharge Amount to reflect over- or under-recoveries,

respectively.

(f) Additional Adjustment. An additional adjustment shall be

made in the computation of each customer's Monthly

Surcharge Amount to reflect the impact of the Commission

order issued May 4, 1994, at Docket Nos. RP91-47-000, et

al. on Seller's allocation mechanism for determining

Shippers' share of Seller's take-or-pay cost. This

adjustment will cause a credit or debit in the computation

of Shippers' Monthly surcharge Amount to reflect over- or

under-recoveries, respectively.

The Additional Adjustment shall be made by Seller as to

each of the individual pipeline take-or-pay proceedings

after the Commission issues a final, non-appealable order

approving each of the upstream pipeline's take-or-pay

allocation methodology. Additional Adjustments will be

computed in each of Seller's Compliance filings to

flowthrough its upstream pipeline's take-or-pay charges,

which compliance filings shall be tendered within 30 days

of final, non-appealable orders by the Commission

approving each individual upstream pipeline's take-or-pay

allocation method.

Billing adjustments to reflect any Additional Adjustment

will be made to customer's invoices by Seller, including

payment of refunds of overpayments, within sixty (60) days

after the Commission issues a final, non-appealable order

approving Seller's compliance filing to flowthrough the

corresponding take-or-pay charges. Such billing