UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-9C-3
QUARTERLY REPORT PURSUANT TO RULE 58
For the Quarterly Period Ending June 30, 1998
Registered Holding Company:
National Fuel Gas Company
(A New Jersey Corporation)
10 Lafayette Square
Buffalo, New York 14203
<PAGE>
<TABLE>
ITEM 1 - ORGANIZATION CHART
<CAPTION>
Name of Reporting Co. Energy or Gas Date of State of Percentage of Nature of Business
Related Organization Organization Voting Securities
Held
<S> <C> <C> <C> <C> <C>
National Fuel Gas Company Holding 1902 New Jersey Holds all voting The Company is an integrated
securities of National natural gas operation engaged in
Fuel Resources, Inc. owning and holding securities
and the reporting issued by its subsidiaries.
companies except as
indicated below.
National Fuel Resources, Holding 1991 New York Holds all voting Gas marketing.
Inc. securities of Gateway
Energy, Inc.
Seneca Independence Gas 1996 Delaware 100% Holds a 33 1/3% general
Pipeline Company partnership interest in
Independence Pipeline
Company, which was not
formed under Rule 58.
Niagara Independence Holding 1997 Delaware 100% Holds the 25% general
Marketing Company partnership interest in
DirectLink indicated below.
DirectLink Gas Marketing Gas 1997 Delaware 33-1/3% Gas marketing
Company
Niagara Energy Gas 1997 New York 100% Gas marketing.
Trading Inc.(now known as
Upstate Energy Inc.)
Gateway Energy, Inc. Gas 1995 New York 100% Gas marketing.
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NARRATIVE DESCRIPTION:
National Fuel Gas Company and National Fuel Resources, Inc. are not
"reporting companies" but are included in this Item 1 because they hold
directly or indirectly voting securities issued by reporting companies as
indicated above. During the quarter ended June 30, 1998, the reporting
companies engaged in the following activities:
Seneca Independence Pipeline Company ("SIP") retained its 33 1/3% general
partnership interest in Independence Pipeline Company ("Independence"),
pursuant to approval by the SEC under the PUHCA (see File 70-9117, HCAR
No. 35-26840). SIP's transactions this quarter are described in its
financial statements at Item 6.
Niagara Independence Marketing Company ("NIM") retained its interest in
DirectLink Gas Marketing Company ("DirectLink"). One partner was required
by contract to withdraw from DirectLink, so NIM became a 33-1/3% partner
without contributing any additional capital. NIM's and DirectLink's
transactions this quarter are described in their financial statements at
Item 6.
Niagara Energy Trading Inc. changed its name to Upstate Energy Inc. this
quarter, and engaged in gas marketing transactions this quarter.
Gateway Energy, Inc. no longer functions as a separate entity, pending the
effective date of a planned merger with its corporate parent, National
Fuel Resources, Inc.
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ITEM 2 - ISSUANCE OF SECURITIES AND CAPITAL CONTRIBUTIONS
<CAPTION>
Company Type of Principal Amount Issue or Cost of Person to Collateral Consideration
Issuing Security of Security Renewal Capital Whom Security Given With Received for
Stock Issued Was Issued Security Each Security
<S> <C> <C> <C> <C> <C> <C> <C>
Seneca Note $1,100,000 Issue N/A National N/A $1,100,000
Independence Note 100,000 Issue Fuel Gas 100,000
Pipeline Company
Company
DirectLink Gas no transactions this quarter
Marketing
Company
Niagara no transactions this quarter
Independence
Marketing
Company
Niagara no transactions this quarter
Energy
Trading
Inc.
Gateway no transactions this quarter
Energy,
Inc.
</TABLE>
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<TABLE>
ITEM 3 -ASSOCIATE TRANSACTIONS
PART 1 - TRANSACTIONS PERFORMED BY REPORTING COMPANY ON BEHALF OF ASSOCIATE COMPANIES
<CAPTION>
Reporting Co. Associate Co. Types of Direct Indirect Cost of Total Amount Billed
Rendering Receiving Services Costs Costs Capital
Services Services Rendered Charged Charged
<S> <C> <C> <C> <C> <C> <C>
NONE
</TABLE>
<TABLE>
PART 2 - TRANSACTIONS PERFORMED BY ASSOCIATE COMPANIES ON BEHALF OF REPORTING COMPANY
<CAPTION>
Associate Co. Reporting Co. Types of Direct Indirect Cost of Total Amount Billed
Rendering Receiving Services Costs Costs Capital
Services Services Rendered Charged Charge
<S> <C> <C> <C> <C> <C> <C>
National Fuel Seneca Managerial, -0- -0- -0- -0-
Gas Supply Independence financial,
Corporation Pipeline legal, and
Company other similar
services.
National Fuel Gateway Managerial, -0- -0- -0- -0-
Resources, Inc. Energy, Inc. financial,
and other
similar
services.
Seneca Niagara Managerial, $58,800.14 -0- -0- $58,800.14
Resources Energy financial and
Corporation Trading Inc. other similar
(now Upstate services.
Energy Inc.)
</TABLE>
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Niagara Energy Trading Inc. also purchased regulated interstate natural gas
transportation and storage services from its associate, National Fuel Gas Supply
Corporation ("Supply"), pursuant to Supply's FERC gas tariff, but such services
are "exempted transactions" pursuant to Rule 81 under the Public Utility Holding
Company Act (17 CFR Sec. 250.81).
<PAGE>
ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT
Investment in Energy Related/Gas Related Companies:
NOTE: All the Reporting Companies are gas-related companies; none are energy-
related companies.
Investments in Gas-Related Companies:
Total Current Aggregate Investment:
Pipeline activities $5,201,000
Marketing activities 201,000
----------
Total Current Aggregate Investment: $5,402,000***
*** Reflects principal loan balances at 6/30/98 plus money paid for common stock
in previous quarters.
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<TABLE>
ITEM 5 - OTHER INVESTMENTS
<CAPTION>
Major Line of Energy- Other Investment in last Other Investment in This Reason For Difference
Related Business U-9C-3 Report U-9C-3 Report in Other Investment
<S> <C> <C> <C>
None
</TABLE>
<PAGE>
<TABLE>
ITEM 6- FINANCIAL STATEMENTS AND EXHIBITS
<CAPTION>
A. FINANCIAL STATEMENTS:
<S> <C>
Balance Sheet for Seneca Independence Pipeline Company ("Seneca") Confidential treatment requested pursuant
to Rule 104(b)
Income Statement for Seneca Confidential treatment requested pursuant
to Rule 104(b)
Balance Sheet for Niagara Independence Marketing Company ("Niagara") Confidential treatment requested pursuant
to Rule 104(b)
Income Statement of Niagara Confidential treatment requested pursuant
to Rule 104(b)
Balance Sheet for DirectLink Gas Marketing Company ("DirectLink") Confidential treatment requested pursuant
to Rule 104(b)
Income Statement for DirectLink Confidential treatment requested pursuant
to Rule 104(b)
Balance Sheet for Upstate Energy Inc. ("Upstate") Confidential treatment requested pursuant
to Rule 104(b)
Income Statement for Upstate Confidential treatment requested pursuant
to Rule 104(b)
Balance Sheet for Gateway Energy, Inc. ("Gateway") Confidential treatment requested pursuant
to Rule 104(b)
Income Statement for Gateway Confidential treatment requested pursuant
to Rule 104(b)
</TABLE>
B. EXHIBITS: NONE
SIGNATURES
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, National Fuel Gas Company has duly caused this report to be signed and
authorized on its behalf by the undersigned. Please direct inquiries concerning
this report to the undersigned at (716) 857-7702
Dated: December 10, 1998
NATIONAL FUEL GAS COMPANY
By /s/ James R. Peterson
-----------------------
James R. Peterson
Assistant Secretary
