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. 197 Sub. Original Sheet No. 197 : Superseded

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

Examples of the application of these rules in various

circumstances will be included in statements of policy which

Transporter will post on its Electronic Bulletin Board.

14.9 Imbalance Resolution. A Shipper may elect to resolve

imbalances either "in kind" or by "cash-out". This election

must be made by submitting a completed and signed "Imbalance

Resolution Methodology Form" (see Section 14.12 below). Any

Shipper not submitting that form will be deemed to have

elected to resolve imbalances via cash-out. All imbalances on

all of Shipper's contracts must be resolved using the same

methodology. The election of methodologies must be made at or

before the earliest time a monthly nomination is required to

be submitted under any of Shipper's contracts.

If Shipper elects to resolve imbalances in kind, that Shipper

will be subject to the Transportation Balancing Fee as

described in Section 14.8 hereof. Imbalances of such

Shippers, and imbalances of other Shippers which have not been

cashed-out, may be resolved in one of the following ways:

(a) Shipper Imbalance Exchange - Shippers who agree to all

the terms of Transporter's Imbalance Exchange, and so

indicate on their Imbalance Resolution Methodology Form,

will be allowed to exchange imbalances with other such

Shippers on the Shipper Imbalance Exchange. In a

transaction on the Shipper Imbalance Exchange, the

imbalance quantities of each participating Shipper must

be offset to a level within that participating Shipper's

MITL for the agreement which has the imbalance being

exchanged. Transporter will post a participating

Shipper's imbalance information on the Shipper Imbalance

Exchange portion of Transporter's Electronic Bulletin

Board or, upon receipt of a written request, will make

the information available to a participant in written

form. Transporter will have applicable information

posted by the 25th day of the month following the

activity month, or the next following business day if

the 25th falls on a weekend or holiday. Shippers

desiring to trade imbalances must present Transporter

with a request for transfer (via Transporter's