National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 432 Original Sheet No. 432 : Effective

GENERAL TERMS AND CONDITIONS

21. TRANSITION COSTS (Cont'd.)

21.4Implementation Costs

Transporter shall seek to recover the costs associated with new

facilities installed to physically implement Order No. 636

(including, but not limited to, the costs for an Electronic

Bulletin Board as well as new metering and flow control

equipment), together with interest, through general Section 4

rate proceedings.

21.5Upstream Supplier's Transition Costs

(a) Flow Through of Charges. Transporter has been a customer

of several interstate pipelines, one or more of which may

bill Transporter for costs, directly or indirectly, as

Transition Costs under Order No. 636. Transporter shall be

entitled to flow through to its firm Buyers all Transition

Costs that Transporter is required to pay such upstream

pipelines.

(b) Basis for the Flow Through of Charges. The charges to

Transporter, associated with Account Nos. 191, 858, and the

transportation and compression costs in Account No. 186, as

well as with any other transition costs to Transporter as

may be authorized by the Commission, shall be flowed

through to all firm Buyers on an as-billed basis using the

firm Buyers' entitlements during the period of time or on a

date prior to the effective date that corresponds to the

period of time or date utilized by the upstream pipeline

for allocation purposes, unless otherwise modified by the

Commission.

proposed effective date of an initiation of a charge or a

change in the charges covered by this section, Transporter

shall file with the Commission and mail to each of its