National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 08/01/1993, Docket: RS92- 21-004, Status: Effective

Sub. Original Sheet No. 194 Sub. Original Sheet No. 194 : Superseded

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

14.6 Adjustment of Receipts and Deliveries.

It shall be the responsibility of Shipper to control and, if

necessary, adjust deliveries of gas to Transporter for

transportation hereunder and to control and, if necessary, to

adjust receipts of gas from Transporter, in order to maintain

a daily balance of receipts and deliveries (except to the

extent otherwise provided in an applicable Rate Schedule).

Transporter shall not be obligated to receive or deliver gas

on any day in excess of the quantities scheduled by

Transporter for Shipper, nor shall Transporter be obligated to

deliver to Shipper at the delivery point(s) quantities in

excess of quantities received for Shipper at the receipt

point(s), less quantities for fuel and loss retention (in both

cases, except to the extent otherwise provided in an

applicable Rate Schedule). Transporter shall make available

to Shipper information regarding receipts and deliveries based

on the best operating information available to Transporter and

make such information available to all parties to the

transaction. Transporter shall make such operating

information available on its Electronic Bulletin Board System,

weekly for meters equipped with real time measurement operated

by National, or such meters operated by others as they become

available. Upon notification, Shipper shall be obligated to

adjust receipts and deliveries of gas to correct or avoid any

imbalance. Any adjustment to receipts and deliveries by

Shipper, whether or not pursuant to notification from

Transporter or otherwise, shall be coordinated with

Transporter's gas dispatchers.

14.7 Calculation of Monthly Imbalances. A Shipper's imbalance

under a particular service agreement is always equal to the

amount of gas received by Transporter for that Shipper's

account under that agreement, less the amount Transporter

delivers to that Shipper under that agreement, and less fuel

and loss retention, adjusted for imbalance payback and relief.

Imbalances can be either positive (adjusted receipts for

Shipper's account exceed deliveries to Shipper) or negative

(deliveries to Shipper exceed adjusted receipts for Shipper's

account).