National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 04/01/1997, Docket: RP97-201-000, Status: Effective

Third Revised Sheet No. 105 Third Revised Sheet No. 105 : Superseded

Superseding: Second Revised Sheet No. 105

ESS RATE SCHEDULE

Enhanced Storage Service

6. STORAGE FIELD LOSSES

In the event of a loss of gas from one or more storage fields utilized

by Transporter resulting from force majeure, such loss shall be

allocated among Transporter and each Shipper receiving service under the

FSS, SS-1, SS-2, ESS or ISS Rate Schedule in proportion to the quanti-

ties of gas (excluding base gas) of each in storage immediately prior

thereto as reasonably determined by Transporter, and if such extraordi-

nary loss exceeds the top gas balances of Transporter and all such

Shippers, such excess will be deemed to be from Transporter's base gas.

Losses of gas from storage fields utilized by Transporter that are not

losses resulting from force majeure, as defined below, will be deemed to

be gas from Transporter's top gas balance, and, to the extent such

losses exceed Transporter's top gas balance, such excess will be deemed

to be from Transporter's base gas. For purposes of this Section 6, a

loss of gas resulting from force majeure is a loss caused by any acts of

God, strikes, lockouts, acts of the public enemy, wars, blockades,

insurrections, riots, epidemics, landslides, lightning, earthquakes,

fires, storms, floods, washouts, arrests and restraints of rulers and

peoples, civil disturbances, explosions, breakage or accident to

machinery or lines of pipe, line freeze-ups, or similar causes.

Shipper is placed on notice that Transporter may recognize storage gas

losses for rate and accounting purposes. Such losses shall be valued at

the current replacement cost of gas. After accounting recognition of

any such loss, Transporter shall record and maintain a regulatory asset

account which shall be maintained until Transporter's next general rate

change filing under Section 4 of the Natural Gas Act. In any of

Transporter's general rate change filings, Transporter may propose to

amortize storage gas losses through its base rates. This provision

shall apply to storage gas losses incurred but unamortized as of the

date upon which this provision becomes effective, and to those incurred

after that date.