National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 07/01/1994, Docket: CP92-508-001, Status: Effective

First Revised Sheet No. 126 First Revised Sheet No. 126 : Superseded

Superseding: Original Sheet No. 126

ISS RATE SCHEDULE

Interruptible Storage Service

6. MINIMUM MONTHLY BILL

None.

7. 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 quantities of gas (excluding

base gas) of each in storage immediately prior thereto as reasonably

determined by Transporter, and if such extraordinary 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 7,

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 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.