National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 429 Original Sheet No. 429 : Effective

GENERAL TERMS AND CONDITIONS

21. TRANSITION COSTS (Cont'd.)

(ii)Allocation of demand costs. The portion of the

balance classified as demand shall be allocated among

the customers on the ratio of each customer's demand

entitlements under all firm sales rate schedules in

effect on the day before the effective date to the

total of such demand entitlements. The demand

entitlements for the customers shall be: RQ - the

Minimum Monthly Demand; CD - the Maximum Daily

Quantity.

(iii)Billing and payment. Transporter shall invoice each

customer for its share of the costs subject to this

Section 21.1 within sixty (60) days of the effective

date. Any payment due shall be made within ten (10)

days after receipt of Transporter's invoice, unless

the customer elects to pay the invoiced amount in

twelve monthly installments, beginning with the month

following the month in which the invoice is received

by the customer. In the event the customer elects to

make monthly payments, the customer shall also be

required to pay interest on the unpaid balance at the

interest rate specified in the Commission's

regulations for purposes of computing interest on

amounts collected subject to refund.

Nos. 191 and 858 and the transportation and compression

costs in Account No. 186 as of the effective date is a net

credit balance ("balance") such balance shall be refunded

to the customers within sixty (60) days of the effective

date.

Refunds of the demand portion of the balance to the

customers shall be calculated utilizing the same allocation

factors described in Section 21.1(b)(ii). Refunds of the

commodity portion of the balance to the customers shall be

calculated utilizing the same allocation factors described

in Section 21.1(b)(i).