National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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Effective Date: 09/01/1996, Docket: RP96-331-000, Status: Effective

Fourth Revised Sheet No. 211 Fourth Revised Sheet No. 211 : Superseded

Superseding: Sub. Third Revised Sheet No. 211

GENERAL TERMS AND CONDITIONS

17. ADJUSTMENTS, SURCHARGES, AND NEGOTIATED RATES

17.1 Adjustments and Surcharges. Transporter and Shipper recognize

that Transporter shall, from time to time, experience changes in

costs related to providing service under this FERC Gas Tariff,

including, but not limited to, changes in the cost of labor,

benefits, materials and supplies, taxes, and required rate of

return, costs associated with the resolution of past disputes or

outstanding uncertainties concerning amounts owed by Transporter

or attributable to Transporter, and costs generated by decisions

by the Commission, the courts, or by an arbitration panel or other

body having jurisdiction over Transporter. It may be appropriate,

equitable, and consistent with cost responsibility to allocate

such costs among Shippers based on taking into account past period

factors, such as contract demand levels, purchases, or other

factors related to a prior period of time. Shipper agrees that

Transporter shall have the right, from time to time, to make rate

change filings based in whole or in part on factors related to

past periods. Shipper shall have the right to intervene and

protest any such filings.

17.2 Negotiated Rates. Notwithstanding anything to the contrary con-

tained in this Tariff, Transporter may charge a negotiated rate

for service under any rate schedule contained in this Tariff to

any shipper that has access to service at the rates set forth in

the applicable rate schedule and agrees to pay such negotiated

rate.

A Negotiated Rate shall mean a rate for service, where one or

more of the individual rate components exceed the maximum charge,

or are less than the minimum charge, for such components.

With respect to a Negotiated Rate which, when calculated on a

100% load factor basis, exceeds Transporter's maximum rate for

that service, for the purposes of allocation of capacity pursuant

to Sections 13, 16, and 26 of these General Terms and Conditions,

a Shipper paying said Negotiated Rate would be considered to have

paid the maximum rate for such services.