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Sub.Original Sheet No. 202 Sub.Original Sheet No. 202 : Superseded

GENERAL TERMS AND CONDITIONS

14. ALLOCATION AND IMBALANCES (Cont'd.)

14.11 Prior Month Adjustments.

(a) Post-Restructuring Imbalances

If a Prior Month Adjustment (PMA) is to be made (either

at the request of Shipper or at Transporter's

initiative), Transporter will notify Shipper of the

amount and nature of the PMA, either as part of the

Monthly Imbalance Statement or in a separate

communication. Shipper has until the end of the month

following the month in which such notification was made

to resolve the PMA in kind by adjusting Shipper's

receipts and deliveries of gas.

If the PMA is not resolved in kind within the required

time, a positive PMA (Shipper has too much gas on

Transporter's system) will be resolved by Transporter's

retaining an amount of Shipper's gas equal to the amount

of the PMA, at no cost and free and clear of all claims

by any party. A negative PMA (Shipper has insufficient

gas on Transporter's system) will be resolved by

Shipper's paying to Transporter an amount of money equal

to the amount of the PMA (expressed in dekatherms)

multiplied by the Cash-Out Price applicable to the month

which was adjusted by that PMA. Shipper's regular bill

for transportation services will include the amount of

gas retained by Transporter pursuant to this paragraph

and/or the amount which is owed by Shipper pursuant to

this paragraph, which will be subject to all payment and

collection requirements applicable to that bill.

(b) Pre-Restructuring Imbalances

Shippers with imbalances existing prior to August 1,

1993 may correct such imbalances pursuant to procedures

in effect at the time the imbalance was incurred until

October 1, 1993. Any remaining imbalances as of this

date will be added to current imbalances and be subject

to the provisions of Section 14.8 - 14.10. Optionally,

a Shipper may elect to add any existing imbalances to a

current imbalance prior to August 1, 1993.