National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 07/29/1994, Docket: RP91- 47-012, Status: Effective

Sub. First Revised Sheet No. 216A Sub. First Revised Sheet No. 216A : Superseded

Superseding: Sub. Original Sheet No. 216A

GENERAL TERMS AND CONDITIONS

20. PASS-THROUGH OF FIXED TAKE-OR-PAY SURCHARGE (cont'd)

(d) Surcharge Amount. The principal amount of each increment of

take-or-pay costs charged to Seller by its upstream

pipelines (including original carrying costs computed),

together with the number of months comprising the

amortization period associated with each such increment of

take-or-pay costs, are reflected on one or more of Sheet

Nos. 217 through 225 of Seller's FERC Gas Tariff. Any

carrying charges due Seller shall be calculated on a monthly

basis pursuant to Commission approved interest rates.

(e) Surcharge Adjustment. A one-time adjustment, to be

recovered in equal monthly installments over a twenty-four

month period, shall be made in the computation of each

customer's Monthly Surcharge Amount to reflect the impact of

Seller's allocation mechanism on Shippers' share of Seller's

take-or-pay costs, allocated under this Section 20 of the

General Terms and Conditions to Seller's FERC Gas Tariff,

First Revised Volume No. 1 as Section 20 existed in Seller's

filing on June 21, 1991 in Docket No. RP91-47-000, et al.

This one-time adjustment caused a credit or debit in the

computation of Shippers' Monthly Surcharge Amount to reflect

over- or under-recoveries, respectively.

(f) Additional Adjustment. An additional adjustment shall be

made in the computation of each customer's Monthly Surcharge

Amount to reflect the impact of the Commission order issued

May 4, 1994, at Docket Nos. RP91-47-000, et al. on Seller's

allocation mechanism for determining Shippers' share of Sel-

ler's take-or-pay cost. This adjustment will cause a credit

or debit in the computation of Shippers' Monthly surcharge

Amount to reflect over- or under-recoveries, respectively.