National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

Effective Date: 08/01/2004, Docket: RP04-376-000, Status: Effective

First Revised Sheet No. 454 First Revised Sheet No. 454 : Effective

Superseding: Original Sheet No. 454

GENERAL TERMS AND CONDITIONS

27. ORDER OF DISCOUNTS

If and when Transporter discounts the rates applicable for service

under any Service Agreement under Rate Schedules included in this

Tariff, the amount of any such discount shall be accounted for as a

reduction of maximum rates in the following sequence to the extent

any of the following components are included in the maximum rate:

(a) Niagara Zone 1 Secondary Point Surcharge

(b) X-58 Conversion Surcharge