National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 08/01/1993, Docket: RS92- 21-008, Status: Effective

2nd Sub. Original Sheet No. 199 2nd Sub. Original Sheet No. 199 : Superseded

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

(v) the cash-out shall be accomplished in the same manner,

as if the Shipper's entire imbalance had arisen during

the given activity month and was being cashed out

pursuant to Section 14.10 hereof, except that the cash-

out price shall be the Index as defined in Section

14.10(a) hereof, without adjustment by 110% or 90%; and

(vi) Transporter is not required to exercise its option if

Transporter believes, in its sole discretion, that

exercise of its option would not be prudent at that

time.

14.10 Cash-Out of Imbalances. If a Shipper which has elected (or been

deemed to elect) to resolve imbalances via cash-out has a Cumulative

Monthly Imbalance in excess of one MITL, that Shipper's entire

Cumulative Monthly Imbalance shall be cashed-out as described in

this Section 14.10.

(a) Clearing of negative imbalances. Should such imbalance be

negative, the imbalance shall be subject to Negative Imbalance

Cash-Out.

The Negative Imbalance Cash-Out Price is a price per Dth which

is applied to the amount of the Shipper's negative imbalance.

Shipper's regular invoice for transportation services will

include the money owed by Shipper under this Negative Imbal-

ance Cash-Out, which will be subject to all payment and

collection requirements applicable to that bill. Upon receipt

of payment, Transporter will make gas accounting entries

reducing the amount of Shipper's negative imbalance according-

ly.

Transporter shall post the Negative Imbalance Cash-Out Price

for each month on its Electronic Bulletin Board. The Negative

Imbalance Cash-Out Price shall be equal to one hundred ten

percent (110%) of the following index (the "Index"):

SWI + WAT