National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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

Second Revised Sheet No. 131R.04 Second Revised Sheet No. 131R.04 : Superseded

Superseding: First Revised Sheet No. 131R.04

IR-2 RATE SCHEDULE

Hub Service - Imbalance Resolution Schedule

3. RATE (Cont'd)

3.3 Transporter will retain the percent of receipts set forth on Sheet

No. 5A as "fuel, loss and company-use allowance," except that this

percentage may be discounted as provided in Subsection 3.4 hereof.

3.4 Transporter is not obligated to offer to resolve imbalances or to

resolve imbalances at any rates or allowances less than the maximum

rates and allowances specified for this Rate Schedule on Sheet No.

5A; however, nothing precludes Transporter from charging a rate

between the maximum and minimum rates (the current Posted Rate), or

retaining less than the maximum allowance for this service under

this Rate Schedule.

4. RECEIPT AND DELIVERY PRESSURE

Shipper shall provide gas to Transporter at pressure sufficient to enter

Transporter's pipeline at the point(s) of receipt, provided, however,

that such pressure shall not exceed any maximum pressure determined by

Transporter from time to time. Transporter shall deliver gas to or for

the account of Shipper at the delivery point(s) at the pressure existing

in Transporter's system.

5. MINIMUM RECEIPT POINT QUANTITIES

Transporter shall not be required to receive or deliver gas at a receipt

or delivery point where the total quantity of gas for IR-2 Service

scheduled is less than that required to operate existing measurement

facilities at such point.

6. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions of Transporter's effective FERC Gas

Tariff, Third Revised Volume No. 1, and any revisions thereof that may

be proposed and made effective from time to time thereafter, shall apply

to and are made a part of this Rate Schedule, to the extent such terms

and conditions are not inconsistent with the express terms of this IR-2

Rate Schedule.