National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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

First Revised Sheet No. 185 First Revised Sheet No. 185 : Superseded

Superseding: Sub. Original Sheet No. 185

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

(b) For the purpose of minimizing operational conflicts between

various pipeline facilities with respect to the delivery of

gas to and from Transporter's facilities, Transporter is

willing to negotiate and execute Operational Balancing

Agreements with Operators that are not among parties described

in Section 14.2(c)(i)-(iv) hereof (herein called the OBA

Party). Transporter is also willing to negotiate with any

other party which does not qualify to be an OBA Party as

defined above, toward an Operational Balancing Agreement which

would provide Transporter with assurances equivalent to those

contained in the above definition of an OBA Party. Such

Operational Balancing Agreements shall specify the gas custody

transfer procedures to be followed by Transporter and the OBA

Party for the scheduling of quantities to be received by

Transporter at receipt points and delivered by Transporter at

delivery points. Such Operational Balancing Agreements will

provide that any variance between actual quantities and

scheduled quantities for any day shall be resolved in-kind

promptly pursuant to the terms of the Operational Balancing

Agreement.

To facilitate such determination of variances on a timely

basis, Transporter and the OBA Party will agree in the

Operational Balancing Agreement on necessary and timely

measurement, reporting and accounting procedures. Transporter

shall post on the Electronic Bulletin Board System those

receipt and delivery points which are subject to an Operation-

al Balancing Agreement.

(c) It is Transporter's intent to negotiate and execute Operation-

al Balancing Agreements on a non-discriminatory basis with any

OBA Party. However, Transporter shall have no obligation to

negotiate and execute Operational Balancing Agreements with

any party that: