National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 08/01/1997, Docket: RP97-398-000, Status: Effective

Original Sheet No. 379 Original Sheet No. 379 : Effective











Imbalances result whenever the amount of gas a Shipper receives

from Transporter's system differs from the amount that Shipper

delivered into Transporter's system (net of various

adjustments). Imbalances can result from a difference between

the amount of gas nominated at a particular receipt or delivery

point and the amount of gas measured actually passing through

that point. This Section 14 describes Transporter's methodology

for allocating shortfalls and overruns at receipt and delivery

points, and includes the various control measures intended to

discourage, minimize and correct imbalances. Scheduled receipts

and deliveries will be the basis for allocation of actual

deliveries or receipts. The allocation methodology applied to

actual deliveries or receipts shall be determined in accordance

with an Operational Balancing Agreement as set forth in Section

14.2 hereof, information supplied by Shipper or other entities

as set forth in Sections 14.3(b) and 14.4(b) hereof, or the

default methodologies set forth in Sections 14.3(c) and 14.4(c)



14.2Operational Balancing Agreements


(a) Any imbalances arising under any transportation agreement

between Shipper and Transporter that are attributable to

variances (1) between actual receipts of natural gas and

scheduled receipts of natural gas at receipt points into

Transporter's system, or (2) between actual deliveries of

natural gas and scheduled deliveries of natural gas at

delivery points from Transporter's system, which receipt

and/or delivery points are subject to Operational

Balancing Agreements, as more fully described in

subsection (b) hereof, on the day or days such variances

arise, will be resolved by Transporter pursuant to the

terms of the applicable Operational Balancing Agreement

and Shipper shall not be subject to any imbalance charges

or penalties pursuant to its service agreements with

Transporter for such imbalances.