National Fuel Gas Supply Corporation

Third Revised Volume No. 1

Effective Date: 12/31/1996, Docket: RP97-191-000, Status: Effective

Original Sheet No. 237.15 Original Sheet No. 237.15 : Superseded

GENERAL TERMS AND CONDITIONS

27. ORDER OF DISCOUNTS

If and when Transporter discounts the rates applicable for service

under any Service Agreement under Rate Schedules included in this

Tariff, the amount of any such discount shall be accounted for as a

reduction of maximum rates in the following sequence to the extent any

of the following components are included in the maximum rate:

(a) GRI Surcharge

(b) Niagara Zone 1 Secondary Point Surcharge

(d) the base rate