National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 12/01/1995, Docket: RP96- 29-000, Status: Effective

First Revised Sheet No. 108 First Revised Sheet No. 108 : Superseded

Superseding: Sub.Origina Sheet No. 108

ESS RATE SCHEDULE

Enhanced Storage Service

7. STORAGE FIELD LOSSES (Cont'd.)

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 this 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.

8. WITHDRAWALS UPON TERMINATION OF SERVICE

Not less than thirty (30) days prior to the termination of storage

service provided to any Shipper under this rate schedule, Transporter

will notify Shipper of Shipper's Storage Balance. If the Storage Balance

is positive, then the Shipper will withdraw such quantities within thirty

(30) days of the termination of the storage service. Transporter will

take title to all such gas not withdrawn without recourse on the thirty-

first day after the termination of the storage service. If the Storage

Balance is negative, then the Shipper will within thirty (30) days of the

end of the storage service deliver sufficient quantities of gas to make

up the negative Balance. If the Shipper does not deliver sufficient

quantities of gas within that thirty-day period, the Shipper shall pay

Transporter the Negative Imbalance Cash-Out Price, as set forth in

Section 14.10(a) of the General Terms and Conditions, for any remaining

negative imbalance.

9. SHIPPER'S MAXIMUM STORAGE QUANTITIES, AND MAXIMUM DAILY INJECTION

AND WITHDRAWAL QUANTITIES

ESS MSQ ESS MDIQ ESS MDWQ

SHIPPER (Dth) (Dth per Day) (Dth Per Day)

National Fuel Gas Distribution

Corporation-NY & PA 23,882,071 140,483 511,633

Town of Rushford 0 0 0

North East Heat & Light Company 22,648 133 500

Peoples Natural Gas Company 748,611 4,404 9,793

Clarion River Gas Company 0 0 0