National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 07/29/1994, Docket: RP91- 47-009, Status: Effective

Sub. First Revised Sheet No. 213 Sub. First Revised Sheet No. 213 : Superseded

Superseding: First Revised Sheet No. 213

GENERAL TERMS AND CONDITIONS

19. ANNUAL CHARGES ADJUSTMENT CLAUSE (Cont'd.)

19.4 Intent. Seller intends to fund the Annual Charges assessed

against it by the Commission or any successor agency pursuant to

18 CFR Section 154.38(d)(6) through this Section 19. If this

Section 19 is approved by the Commission, Seller does not intend

to recover such Annual Charges recorded in FERC Account No. 928

through a general rate case filing under Section 4 of the Natural

Gas Act.

20. PASS-THROUGH OF FIXED TAKE-OR-PAY SURCHARGE

20.1 Purpose. This Section establishes the procedures under which

Seller will recover from Buyers who formerly received service

under Seller's former RQ and CD rate schedules, the total take-

or-pay charges approved by the Federal Energy Regulatory

Commission ("Commission") and billed to Seller on a fixed basis

by its pipeline suppliers and pipeline transporters ("upstream

pipelines"). Such charges by Seller shall be paid by each such

Buyer (hereinafter "Shipper") until Seller has recovered from

such Shipper the total allocated amounts, principal and carrying

charges, to be recovered from Shipper pursuant to this Section

20.

20.2 Procedures. This Subsection 20.2 establishes the procedures

under which Seller will recover from Shippers, through a fixed

Surcharge under Seller's firm transportation rate schedules, the

total take-or-pay charges approved by the Commission to be billed

to Seller by its upstream pipelines. Each Shipper's share of the

fixed take-or-pay charges billed to Seller by its upstream

pipelines shall be separately calculated for each increment of

upstream pipeline take-or-pay permitted by the Commission to be

collected from Seller.

(a) Basis of the Surcharge. Each Shipper's share of the fixed

take-or-pay charges collected from Seller by its upstream

pipelines subject to Order No. 528, shall be determined

according to allocation factors set forth in Section

20.2(b)(1), (4), and (5) below. Each Shipper's share of the

fixed take-or-pay charges collected from Seller by its

upstream pipelines exempt from Order No. 528 shall be

calculated upon the purchase deficiency methodology.