National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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

Sub. Original Sheet No. 195 Sub. Original Sheet No. 195 : Superseded

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

Each month, Transporter will calculate the imbalance for each

agreement (from among all the receipt and delivery points used

under that agreement) and aggregate those calculations into

that agreement's Monthly Imbalance. The Monthly Imbalances

for all the agreements in effect for a single Shipper are set

off against each other to calculate the Monthly Shipper

Imbalance. Each Monthly Shipper Imbalance is aggregated with

any cumulative unresolved imbalances from previous months into

that Shipper's Cumulative Monthly Imbalance. The Cumulative

Monthly Imbalance is compared to a Monthly Imbalance Tolerance

Level ("MITL"), which is equal to 5% of the accumulated daily

scheduled receipts for the month under all that Shipper's

agreements, but at least 1000 Dth.

Transporter will send a Monthly Imbalance Statement, setting

out the Monthly Imbalance for each of Shipper's agreements,

the Monthly Shipper Imbalance and Cumulative Monthly

Imbalance, to each Shipper by the 25th day of the following

month, or by the next following business day if the 25th falls

on a weekend or holiday. If a Shipper indicates its consent

in writing delivered to Transporter, or by E-Mail message on

the EBB System, Transporter will transmit a Shipper's Monthly

Imbalance Statement by E-Mail message on the EBB System.

14.8 Transportation Balancing Fee Imbalances in excess of one MITL

represent unauthorized use of Transporter's system facilities.

If the Monthly Shipper Imbalance quantity causes the

Cumulative Monthly Imbalance to exceed one MITL, a

Transportation Balancing Fee will be charged on the amount in

excess of tolerance, except as otherwise provided in this

Section 14.8. The schedule for this fee per dth is as

follows:

Monthly Imbalance

Tolerance Level Transportation Balancing Fee

Up to 1 0

> 1 to 2 0.2 x ISS Rate

> 2 to 3 0.4 "

> 3 to 4 0.6 "

> 4 to 5 0.8 "

> 5 1.0 "