National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 428 Original Sheet No. 428 : Effective

GENERAL TERMS AND CONDITIONS

21. TRANSITION COSTS

Pursuant to Order Nos. 636 et seq., issued by the Commission,

Transporter is authorized to recover Transition Costs from its Buyers

as set forth in this Section. This Section shall be applicable until

such time as Transporter has recovered all of its Transition Costs.

21.1 Costs Associated with Account Nos. 858, 191 and 186

(a) Reports. On or before May 1, 1994, Transporter shall file

with the Commission and mail to each of its affected Buyers

and interested state commissions, a report setting forth

the final balances (as of April 30, 1994) of Account Nos.

858 and 191 and the transportation and compression costs in

Account No. 186, after all adjustments and the amounts

already collected or disbursed as of that point in time if

the recovery and/or refund of the accounts has already

commenced pursuant to a Commission order. Also,

Transporter shall file a report with the Commission setting

forth the amounts under Account Nos. 191 and 858, as well

as the transportation and compression costs in Account No.

186, finally billed or refunded.

(b) Debit Balance. If Transporter's net balance of Account

Nos. 191 and 858 and the transportation and compression

costs in Account No. 186 is a debit balance as of August 1,

1993, (referred to hereunder as "the effective date"), such

net debit balance ("balance") shall be recovered through a

direct bill to Transporter's former firm sales customers

("customers"). Also, Transporter shall be entitled to

recover any out-of-period adjustments to these accounts

incurred within nine months of the effective date. If a

customer has paid on a lump sum basis, a supplemental

invoice will be rendered to that customer.

(i) Allocation of commodity costs. The portion of the

balance classified as commodity shall be allocated

among the customers on the ratio of each customer's

purchases under the firm sales rate schedules to all

purchases under the firm sales rate schedules during

the twelve months preceding the effective date.