National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 11/01/1998, Docket: RP98-416-000, Status: Effective

First Revised Sheet No. 430 First Revised Sheet No. 430 : Effective

Superseding: Original Sheet No. 430

GENERAL TERMS AND CONDITIONS

21. TRANSITION COSTS (Cont'd.)

A customer's share of the balance may be used to offset its

share of transition costs other than those included in

Section 21.1 provided an agreement exists between

Transporter and the customer allowing such offset.

(d) Adjustments. Within sixty (60) days of any charges or

refunds to Account Nos. 191 and 858, as well as to the

transportation and compression costs in Account No. 186, not

included in the balance defined in (b) or (c) above,

including costs associated with the resolution of

transportation and exchange imbalances, Transporter shall

calculate a new net balance and, utilizing the allocation

factors described in Sections 21.1(b)(i) and (ii) above,

shall issue supplemental invoices or refunds. Refunds

related to the period prior to August 1, 1993, shall be

flowed through to the former firm sales customers regardless

of when Transporter receives such refunds.

21.2 Stranded Costs

Transporter shall seek to recover costs that are stranded as a

result of complying with Order No. 636, et seq., together with

interest, through a limited Section 4 rate proceedings.

21.3 Gas Supply Realignment ("GSR") Costs

(a) Transporter shall recover from its customers under the EFT,

FT, FST, FT-S and FSS Rate Schedules its Gas Supply

Realignment ("GSR") costs in accordance with this Section

21.3. Storage service quantities under the FSS Rate

Schedule will not be so surcharged if surcharged under

another rate schedule. GSR costs are those costs

attributable to realigning Transporter's gas supply

contracts as permitted by Order No. 636.

(b) Transporter will make periodic filings after the effective

date, seeking necessary Commission authorization to recover

any GSR costs actually incurred, plus carrying charges

calculated from the date of incurrence of such GSR costs to

the projected date of payment as determined pursuant to

Section 154.67(c)(2) of the Commission's regulations.