National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 08/01/1997, Docket: RP97-398-001, Status: Effective

Sub. Original Sheet No. 380 Sub. Original Sheet No. 380 : Effective









(b) For the purpose of minimizing operational conflicts

between various pipeline facilities with respect to the

delivery of gas to and from Transporter's facilities,

Transporter is willing to negotiate and execute Opera-

tional Balancing Agreements with Operators that are not

among parties described in Section 14.2(c)(i)-(iv) hereof

(herein called the OBA Party). Transporter is also willing

to negotiate with any other party which does not qualify

to be an OBA Party as defined above, toward an Operational

Balancing Agreement which would provide Transporter with

assurances equivalent to those contained in the above

definition of an OBA Party. Such Operational Balancing

Agreements shall specify the gas custody transfer

procedures to be followed by Transporter and the OBA Party

for the scheduling of quantities to be received by

Transporter at receipt points and delivered by Transporter

at delivery points. Such Operational Balancing Agreements

will provide that any variance between actual quantities

and scheduled quantities for any day shall be resolved

in-kind promptly pursuant to the terms of the Operational

Balancing Agreement.


To facilitate such determination of variances on a timely

basis, Transporter and the OBA Party will agree in the

Operational Balancing Agreement on necessary and timely

measurement, reporting and accounting procedures.

Transporter shall post on the Web Site those receipt and

delivery points which are subject to an Operational

Balancing Agreement.


(c) It is Transporter's intent to negotiate and execute

Operational Balancing Agreements on a non-discriminatory

basis with any OBA Party. However, Transporter shall have

no obligation to negotiate and execute Operational

Balancing Agreements with any party that: