National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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

First Revised Sheet No. 186 First Revised Sheet No. 186 : Superseded

Superseding: Original Sheet No. 186

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

(i) is not sufficiently creditworthy to qualify for transpor-

tation service under Transporter's FT Rate Schedule of a

Maximum Daily Transportation Quantity equal to the sum of

the delivery capacities of the receipt and delivery

points that would be subject to the Operational Balancing

Agreements, and for purposes of Section 3.2 of the FT

Rate Schedule, the cost of performing the service

requested by Shipper for a three-month period would be

arrived at by multiplying one-half (1/2) of the Negative

Imbalance Cash-Out Price specified in Section 14.10(a)

hereof by forty-five (45) times the daily delivery

capacity of such receipt and delivery points;

(ii) does not maintain a dispatching operation which is

staffed on a continuous, around-the-clock basis 365 days

per year;

(iii) would result in the imposition of substantial

additional regulatory requirements upon Transporter; or

(iv) does not commit to timely determination of variances

based on reasonably available measurement technology.

(d) Nothing in this Section 14.2 nor any executed Operational

Balancing Agreement shall limit Transporter's rights to take

action as may be required to adjust receipts and deliveries

under any transportation agreement to reflect actual experi-

ence or to alleviate conditions which threaten the integrity

of Transporter's system, including maintenance of service to

higher priority Shippers and/or service.