National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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

Original Sheet No. 438 Original Sheet No. 438 : Effective

GENERAL TERMS AND CONDITIONS

23. TRANSPORTATION AND STORAGE COST ADJUSTMENTS ("TSCA") (Cont'd.)

23.5Unrecovered Transportation and Storage Cost Surcharges

In each Annual filing, Seller shall adjust its rates either

positively or negatively to include a surcharge to recover or

return the balance in the applicable Account No. 186 subaccount,

Unrecovered Transportation and Storage Cost, as of the preceding

August 31. Separate surcharges shall be determined for the

Reservation Commodity portions of the balance in Account No.

186. Such surcharges shall be determined by dividing the

balance in the applicable Account No. 186 subaccount as of the

preceding August 31 by the Rate Determinants under the EFT Rate

Schedule for the twelve-month period commencing with the

effective date of the Annual filing. This Surcharge Adjustment

shall be set forth on Sheet No. 8 hereof.

For the period January 1 through December 31, the surcharge

recoveries or returns shall be recorded to the amortizing

subaccount each month. If there is a balance remaining in the

amortizing subaccount of Account No. 186 at the end of twelve

months, such balance shall be transferred to the "Current"

subaccount of Account No. 186.

23.6Termination Provision

At such time as the provisions of this Section are terminated,

(i) any net credit balance in the Account No. 186 subaccount,

Unrecovered Transportation and Storage Cost, shall be refunded

to Buyers, or (ii) any net debit balance shall be due and

payable by Buyers.

Such refunds or payments shall be made by either debiting or

crediting a deferred account or by immediate cash refunds/direct

billing payments as may be directed by the Commission, or, in

the absence of direction from the Commission, cash

refunds/direct billing payments.