National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 04/01/1996, Docket: RP95- 31-011, Status: Effective

Second Revised Sheet No. 196 Second Revised Sheet No. 196 : Superseded

Superseding: First Revised Sheet No. 196

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

The Transportation Balancing Fee will be included in Shipper's

regular bill for transportation services, and will be subject

to all payment and collection requirements applicable to that

bill. All Transportation Balancing Fees assessed by

Transporter to any Shipper who is an affiliate of Transporter

during any quarter of a calendar year shall be directly

refunded to each Shipper under Rate Schedule FT, FST or EFT who

was not assessed a Transportation Balancing Fee during that

quarter (a "Balanced Shipper"), based on each Balanced

Shipper's MDTQ under Rate Schedules FT, FST and EFT as a

percentage of the total such MDTQs of all Balanced Shippers.

Such refunds shall be made within 45 days of the close of each

quarter, and may be done by a credit against any amounts due

from that Shipper.

To avoid collection of more than one Transportation Balancing

Fee on a single month's imbalance, Transporter shall apply the

following principles, in a nondiscriminatory manner, in

computing the Transportation Balancing Fee:

(a) The Transportation Balancing Fee shall be applicable to a

Shipper for an activity month only if that Shipper has

made a binding election, pursuant to Section 14.9 hereof,

to resolve imbalances "in kind" (as opposed to by "cash-

out").

(b) The Transportation Balancing Fee shall be calculated only

on the amount by which the current Monthly Shipper

Imbalance worsens that Shipper's Cumulative Monthly

Imbalance.

Monthly Imbalances in part or in full, or which do not

cause the Cumulative Monthly Imbalance to exceed one MITL,

shall not result in any Transportation Balancing Fee;

(d) all gas activity is allocated first to current month

activity; and

(e) imbalances shall be computed on a First-In First-Out

(FIFO) basis.