NATIONAL FUEL GAS CO
POS AMC, 1999-07-06
NATURAL GAS DISTRIBUTION
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                                                               File No. 70-7512

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
 ------------------------------------------------------------------------------

                         POST-EFFECTIVE AMENDMENT NO. 1
                             TO FORM U-1 APPLICATION
                                    UNDER THE
                   PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
 ------------------------------------------------------------------------------

         National Fuel Gas Company          Data-Track Account Services, Inc.
         10 Lafayette Square                10 Lafayette Square
         Buffalo, New York  14203           Buffalo, New York  14203

                    (Names of companies filing this statement
                  and addresses of principal executive offices)
 ------------------------------------------------------------------------------

                            NATIONAL FUEL GAS COMPANY
                    (Name of top registered holding company)
 ------------------------------------------------------------------------------

         Anna Marie Cellino,                 William M. Petmecky,
         Secretary                           Secretary
         National Fuel Gas Company           Data-Track Account Services, Inc.
         10 Lafayette Square                 10 Lafayette Square
         Buffalo, New York  14203            Buffalo, New York  14203

             (Names and addresses of agents for service of process)

             It is requested that the Commission send copies of all
                     notices, orders and communications to:

                               Mark D. Buri, Esq.
                            National Fuel Gas Company
                                   Suite 1500
                               10 Lafayette Square
                             Buffalo, New York 14203


<PAGE>


Item 1.  Description of Proposed Transaction
- --------------------------------------------

         Introduction
         ------------

         National  Fuel Gas Company  ("National")  is a public  utility  holding
company  registered  under the Public  Utility  Holding  Company Act of 1935, as
amended (the "Act"). National is solely engaged in the business of owning all of
the  outstanding   stock  of  twelve  direct  subsidiary   corporations.   These
subsidiaries  are  engaged  primarily  in natural gas  exploration,  production,
transmission,  storage,  distribution,   marketing  as  well  as  other  related
activities.

         One of National's direct  subsidiaries is Data-Track  Account Services,
Inc.,  a New York  Corporation  ("Data-Track").  Pursuant to its Order of May 6,
1988,  HCAR No. 24639 (the "1988 Order"),  the  Commission,  among other things,
authorized   Data-Track  to  perform  collection  services  for  the  subsidiary
companies  in the  National  Fuel  Gas  Company  system  (the  "System").  These
collection  services  were  limited  to  writing  and  distributing  "collection
letters" to customers.  The Commission's Order of March 5, 1991, HCAR 25265 (the
"1991 Order"),  supplemented this authority by permitting Data-Track to join the
System's money pool and "to expand its activities on behalf of System  companies
to include  additional  written contacts and to institute  telephone contacts to
customers with overdue  accounts."  Consistent with Section 13(b) of the Act and
Rule 90 (17 CFR Sec.  250.90),  Data-Track  provides  its  services to companies
within the System at cost.

         Proposal
         --------

         In  addition  to the  authorizations  contained  in the  1988  and 1991
Orders, National and Data-Track respectfully request authority for Data-Track to
offer  collection  services  to  unaffiliated  customers  as well  as to  System
companies.  Data-Track would offer general collection  services to both types of
customers  including  locating debtors,  issuing written  collection  letters to
debtors  and making  telephone  contacts  with  debtors.  Data-Track  would also
monitor  monthly  payments  pursuant to payment  arrangements  and would provide
liquidation   reports  to  its  clients.   While  Data-Track  would  charge  its
unaffiliated  customers a market-based  rate for its services,  consistent  with
Section  13(b)  of the Act and Rule 90 (17 CFR Sec.  250.90),  Data-Track  would
continue to provide its services at cost to companies within the System.

         The ability to service unaffiliated companies would allow Data-Track to
more  efficiently  cope with the  cyclical  nature of the  collections  services
required by its primary  customer,  National Fuel Gas  Distribution  Corporation
("Distribution").  As National's natural gas utility,  Distribution  experiences
its  highest  level  of  customer   demand  during  the  colder  winter  months.
Accordingly, Distribution has a larger amount of outstanding receivables, and is
therefore in need of  additional  collection  services,  after those high demand
periods.

         Unaffiliated  customers would present Data-Track with an opportunity to
maintain a more  consistent  flow of work. A more consistent case load, in turn,
would allow Data-Track to more efficiently  utilize its personnel.  The presence
of  additional  clients  would also enable  Data-Track  to utilize its  tangible
property,  including its computers,  telephone systems and rented property, more
efficiently  by taking  advantage of any excess  capacity  that may exist and by
allocating fixed costs over a larger customer base.

         Again,  pursuant  to Section  13(b) of the Act and Rule 90 (17 CFR Sec.
250.90), Data-Track's collection services would continue to provide its services
at cost to  System  members.  Furthermore,  as a result  of the  above-mentioned
efficiencies,  the presence of unaffiliated  customers  should lower the cost of
Data-Track's  collection services to all System members,  including Data-Track's
principal customer, Distribution.

         Accordingly,   the  applicant-declarants   submit  that  the  requested
approval would be beneficial to National's investors,  Distribution's ratepayers
and the public in general.

Item 2.  Fees, Commissions and Expenses.
- ----------------------------------------

         It is estimated at this time that the fees, commissions and expenses to
be incurred in connection  with this  post-effective  amendment  will not exceed
$1,000 in miscellaneous expenses.

Item 3.  Applicable Statutory Provisions.
- -----------------------------------------

         If the Commission considers the actions described herein to require any
authorization,  approval  or  exemption  under  any  section  of the  Act or any
provision of the rules or regulations  thereunder other than those  specifically
referred  to  herein,  such  authorization,  approval  or  exemption  is  hereby
requested.

Item 4.  Regulatory Approval.
- -----------------------------

         No federal agency,  other than the Commission,  has  jurisdiction  over
this proposal.

         No state  commission has  jurisdiction  over this proposal  except with
respect to the service  agreements  between  Distribution  and  Data-Track.  The
current Service Agreement,  dated March 1, 1999, is attached hereto as Exhibit A
(the  "Agreement").  Pursuant to Chapter 21 of the  Pennsylvania  Public Utility
Code,  66  Pa.  C.S.  Ch.  21,  the  Agreement  requires  the  approval  of  the
Pennsylvania Public Utility Commission (the "PaPUC"). The PaPUC granted an order
containing  the  required  approval on May 13, 1999, a copy of which is attached
hereto as Exhibit B. Pursuant to Section  110(3) of the New York Public  Service
Law, the Agreement  could not become  effective  until it was filed with the New
York Public Service  Commission  (the "PSC").  Distribution  filed the Agreement
with the PSC under cover dated March 31, 1999.

Item 5.  Procedure.
- -------------------

         The applicants  respectfully  request that an order be issued approving
this post-effective amendment by July 31, 1999.

         It is  submitted  that a  recommended  decision  by a hearing  or other
responsible  officer  of the  Commission  is not  needed  with  respect  to this
proposal.  The office of the Division of Investment  Management Office of Public
Utility  Regulation may assist in the preparation of the Commission's  decision.
There should be no waiting period between the issuance of the Commission's order
and the date on which it is to become effective.

Item 6.  Exhibits and Financial Statements.
- -------------------------------------------

         The following are made part of this post-effective amendment:

                  Exhibits
                  --------

                  A - Service Agreement, dated March 1, 1999, by and between
                      Data-Track Account Services, Inc. and National Fuel Gas
                      Distribution Corporation

                  B - May 13, 1999 Order from the  Pennsylvania  Public  Utility
                      Commission (Docket No. G-00990679)

                  Financial Statements
                  --------------------

         Financial statements of the applicant-declarants are deemed unnecessary
with  respect  to the  proposed  authorization  sought  herein due to the simple
nature of this post-effective amendment.  However,  financial statements will be
furnished to the Commission upon request.

Item 7. Information as to Environmental Effects.
- ------------------------------------------------

         This  proposal   does  not  involve  major  federal   action  having  a
significant effect on the human  environment.  No federal agency has prepared or
is preparing any environmental impact statement with respect to this proposal.


                                   SIGNATURES

         Pursuant to the  requirements of the Public Utility Holding Company Act
of 1935, the undersigned  companies have duly caused this statement to be signed
on their behalf by the undersigned thereunto duly authorized.



Dated:   June 29, 1999


                                          NATIONAL FUEL GAS COMPANY


                                          By /s/Anna Marie Cellino
                                             ---------------------------------
                                                Anna Marie Cellino
                                                Secretary


                                         DATA-TRACK ACCOUNT
                                         SERVICES, INC.


                                         By /s/William M. Petmecky
                                            ----------------------------------
                                                William M. Petmecky
                                                Secretary












                                                                       Exhibit A

                                SERVICE AGREEMENT

           This Service  Agreement,  effective  the 1st day of March,  1999 (the
"Agreement"),  is by  and  between  Data-Track  Account  Services,  Inc.  with a
principal place of business located at 160 Holtz Drive, Suite 300,  Cheektowaga,
New York 14225  (hereinafter  "Contractor");  and National Fuel Gas Distribution
Corporation (hereinafter "Distribution Corporation") with its principal place of
business located at 10 Lafayette Square, Buffalo, New York 14203.

                              W I T N E S S E T H:

           WHEREAS,  Distribution  Corporation  is engaged in providing  utility
services and desires to retain  Contractor  to provide the  collection  services
described herein, subject to the terms and conditions as set forth herein; and

           WHEREAS,  Contractor  is a licensed and certified  collection  agency
engaged in the business of providing  collection  services on business  accounts
and desires to provide such services to Distribution Corporation, subject to the
terms and conditions of this Agreement.

           NOW THEREFORE,  in consideration of the mutual  covenants,  premises,
conditions,  and terms to be kept and  performed,  the parties  hereto  agree as
follows:

           1.  SCOPE OF WORK.  Contractor agrees:
           (a) That it will  faithfully  attempt to procure  payment on accounts
which  are  transferred  to  it  for  the  purpose  of  collection.   Contractor
understands   that   Distribution   Corporation   does  not  warrant  the  legal
enforceability of any of the accounts transferred.

           (b) That in fulfilling its obligations under this contract,  it shall
provide the necessary personnel, equipment, and material.

           (c) That  Distribution  Corporation  retains sole  discretion for the
transferability of all accounts to Contractor.  Distribution  Corporation has no
obligation or duty to send accounts to Contractor.

           (d)  That  it  shall  obtain  written   approval  from   Distribution
Corporation before commencing legal action on any account.  Before such approval
is given,  Contractor shall notify Distribution  Corporation of the law firm who
will be handling the action.

           (e) That only accounts which it submits for legal action are eligible
for  settlement.  All  settlement  offers  must  be  forwarded  to  Distribution
Corporation for approval.

           (f) That it shall forward to Distribution  Corporation a photocopy of
all judgments obtained on any account.

           (g) That it shall advance all court costs necessary in pursuit of its
collection  procedures,  which  amounts  shall be  reimbursed  to  Contractor in
accordance with the payment provisions set forth in Section 2 hereof.

           (h) That,  upon  demand,  it will  return any  account or accounts to
Distribution  Corporation  within twenty (20) days of receipt of said written or
oral demand. Upon receipt of demand for return of any account,  Contractor shall
immediately  cease all collection  activity.  Contractor  understands and agrees
that  Distribution  Corporation  may make such demand in its sole and  exclusive
discretion,  with or without reason or cause,  and that Contractor  shall not be
entitled  to  receive  any  fee or  compensation  for  accounts  demanded  to be
returned.

           (i) That it will  deposit  immediately  into an  escrow  account  all
moneys collected on behalf of Distribution Corporation.

           (j) That on a monthly basis, it will forward all amounts held in this
escrow  account to  Distribution  Corporation  without  any setoff or  reduction
whatsoever  accompanied  by  a  remittance  statement  prepared  in a  form  and
substance  satisfactory  to  Distribution  Corporation.  Said amounts and report
shall be received from  Contractor no later than fifteen (15) days following the
end of each calendar month.

           (k)  That,  on a monthly  basis,  it shall  prepare  and  forward  to
Distribution  Corporation a performance analysis which will summarize the moneys
collected and the amounts remaining due on Distribution  Corporation's accounts.
Such  monthly  performance  analysis  shall be prepared in a form and  substance
satisfactory to Distribution Corporation.

           (l) That,  on a bi-annual  basis (for the six months ended  September
30th and March 31st) it shall prepare and forward to Distribution  Corporation a
report detailing the status of all accounts held. Such bi-annual report shall be
prepared in a form satisfactory to Distribution Corporation.

           (m) That  within ten (10) days of the  execution  of this  Agreement,
Contractor  shall  forward to  Distribution  Corporation  samples of all letters
being  used  in  the  collection  of  Distribution  Corporation's  accounts.  If
Contractor wishes to use any additional collection letters, said letters must be
forwarded to Distribution Corporation for prior approval.

           (n) That all records related to Distribution  Corporation's  accounts
shall be available for  inspection  by  Distribution  Corporation  during normal
business  hours.  All information  furnished by Distribution  Corporation to the
Contractor  shall remain the property of Distribution  Corporation and shall not
be  photocopied or used by the Contractor or any third party without the express
written permission of Distribution Corporation.


           2.  PAYMENT TO CONTRACTOR:

           (a) Subject to Paragraph 2 (b) below,  Distribution  Corporation,  in
consideration for Contractor performing the services set forth herein, agrees to
pay  Contractor  for  services  "at cost" as defined  in Section 13 and  related
regulations of the Public Utility Holding Company Act of 1935, not to exceed the
reasonable  cost of  performing  such services as required by Section 110 of the
Public  Service  Law of New York and  Section  2101 of the  Pennsylvania  Public
Utility Code, 66 Pa. C.S.A. 2102.

           (b)  All  invoices  submitted  by  Contractor  shall  be  sent to the
attention of Darryl L. Gorski, Assistant Director,  Revenue Recovery,  Appletree
Business Park, 2875 Union Road, Cheektowaga, New York 14227 or such other person
designated by Distribution Corporation.

           (c)  Distribution  Corporation  shall  have the  right  to  determine
whether such invoices  submitted by Contractor  are true and accurate only as to
the amount of work that is fully and satisfactorily completed.

           3. CERTAIN BENEFITS.  It is understood that Distribution  Corporation
is not  required to provide or pay for life,  medical,  retirement  or any other
compensation  benefits  that might be  required of  Contractor.  Included in the
amounts  payable under this  Agreement is an amount  available to Contractor for
the payment by Contractor for the purchase of the life, medical,  retirement and
any other  compensation  benefits  required of Contractor by law, rule, order or
regulation of any governmental agency or authority.

           4.  TAXES.
           (a) Contractor  shall be  responsible  for the payment of any and all
local,  state and  federal  taxes,  or other fees,  imposed on the amounts  made
payable to Contractor as a result of the services rendered hereunder.

           (b)  Contractor  shall  be  responsible  for the  withholding  and/or
payment of any and all applicable local, state and federal  employment,  payroll
and/or  income  taxes  associated  with any and all of  Contractor's  employees.
Contractor agrees to indemnify and hold harmless Distribution Corporation for or
from  any  failure,  on the  part of  Contractor,  to  withhold  or  remit  such
applicable taxes.

           (c)  Upon  request  by  Distribution  Corporation,  Contractor  shall
provide documented proof that the above-referenced taxes were paid, as required.

           5. TERM OF AGREEMENT.  This Agreement shall be in effect and continue
for an initial period of one (1) year from the effective  date  indicated  above
and shall  automatically  renew for one year terms.  Either party shall have the
option to terminate this Agreement at any time, for whatever reason, upon thirty
(30) days written notice.  In the event that Contractor  fails to perform any of
the  terms and  conditions  of this  Agreement,  at the  option of  Distribution
Corporation,  the  Agreement  shall at once  cease.  Contractor  agrees that all
moneys collected on behalf of Distribution Corporation and all records furnished
by  Distribution  Corporation  under  the  terms  of  this  Agreement  shall  be
immediately  forwarded to  Distribution  Corporation  upon  termination  of this
Agreement or upon Contractor's business failure, bankruptcy, receivership, etc.

           6.  INDEPENDENT   CONTRACTOR.   It  is  understood  and  agreed  that
Contractor in performing all work hereunder,  shall be an independent contractor
and shall be responsible for accomplishing the results contracted for under this
Agreement.  As an independent  contractor,  Contractor is not authorized to make
any contract,  agreement,  warranty or  representation on behalf of Distribution
Corporation.

           Neither  party  shall in any way  represent  that it is an  employer,
employee,  agent,  partner  or legal  representative  of the other  party.  This
Agreement creates no relationship of joint venture, partnership,  association or
employment  between  Distribution   Corporation  and  Contractor.   Distribution
Corporation assumes no liability for any oral or written representations made by
Contractor. Contractor hereby releases Distribution Corporation from and against
any  liability  for any act or  omission  concerning  any action  undertaken  by
Contractor,  or its  agents,  employees  or  subcontractors,  pursuant  to  this
Agreement.

           7. CONTRACTOR  INDEMNITY  CLAUSE.  Contractor will indemnify and hold
Distribution  Corporation  harmless  from and against any and all loss,  damage,
injury, suits, penalties,  costs,  liabilities and expenses (including,  but not
limited to, legal  expenses,  hearing  costs or expert fees)  arising out of any
claim for loss of or damage to  property,  including  property  of  Distribution
Corporation  or  Contractor,  liability to or death of any person,  including an
employee  of  Distribution  Corporation  or  Contractor,  proximately  caused by
Contractor, its officers, employees, subcontractors or other agents, arising out
of  or  asserted  against  Distribution  Corporation  in  connection  with  this
Agreement or any services to be performed by Contractor or  Contractor's  agents
or subcontractors under this Agreement,  including but not limited to failure to
comply with federal,  state and local  regulations  applicable to services to be
performed  hereunder,  and any claim for loss resulting from Contractor's breach
of the warranties contained in Paragraph 21 hereof.

           8. IRS  EMPLOYER ID NUMBER.  Throughout  the term of this  Agreement,
Contractor  shall provide proof to Distribution  Corporation that it has a valid
Employer ID Number issued by the IRS.  Contractor  shall be responsible  for all
fees,  if any, in  connection  therewith,  and shall  fulfill and  maintain  all
requirements for such a number.

           9.   PROHIBITION   AGAINST   SUBCONTRACTING.   Contractor  shall  not
subcontract  out any of the  work to be  performed  by it under  this  Agreement
without the prior written consent of Distribution Corporation.

           10. WORKING FOR OTHERS.  Distribution Corporation hereby affirms that
nothing in this Agreement  shall limit or restrict  Contractor from working for,
or with, any other person or entity during or after the term of this Agreement.

           11. TRAINING AND EXPERTISE.  Contractor  acknowledges that the person
or persons  performing  the work  specified  in  Paragraph  2 has the  requisite
training and  expertise  necessary to fully and  satisfactorily  complete  their
obligation hereunder. Contractor agrees that if further training or expertise is
or becomes  necessary  or required to fully and  satisfactorily  complete  their
obligation  that  Contractor,  or the person or persons  employed by Contractor,
shall obtain such training or expertise.  Contractor  further  acknowledges that
Distribution  Corporation  shall have no  responsibility  or duty to provide any
such training or expertise for Contractor  which may be necessary or required of
Contractor  in order to  fully  and  satisfactorily  complete  its  obligations,
reasonable fees and costs associated with such training shall be payable as part
of Contractor's "at cost" payment for services.

           12.  QUALITY OF WORK.  Contractor  warrants  that the  services to be
performed by it hereunder shall be accomplished in a manner  consistent with the
level of care and skill ordinarily exercised under similar circumstances.

           13.  INSURANCE.  Contractor  shall  furnish  and  maintain  insurance
coverage,  as listed below.  Insurance  shall be placed with insurance  carriers
acceptable to Distribution Corporation. Contractor shall maintain this insurance
at all times during performance of this Agreement.  In addition, if insurance is
written  on a  "claims-made"  basis,  such  insurance  shall  be  maintained  by
Contractor  for a minimum  period of three  years  after the  completion  of the
Agreement.  Contractor  may  elect to  extend  the  discovery  period  under the
existing policy for not less than three years.

           Contractor shall require all  subcontractors,  to the extent such are
permitted, to furnish insurance listed below. Subcontractors shall maintain this
insurance at all times during the performance of  subcontractor's  services.  In
addition, if insurance is written on a "claims-made" basis, such insurance shall
be maintained by  subcontractors  for a minimum  period of three years after the
completion of their services.  Subcontractors  may elect to extend the discovery
period under the existing policy for not less than three years.

Contractor  and  any   subcontractor   shall  have  National  Fuel  Distribution
Corporation named as an additional insured under the insurance policies required
below.

Insurance Required
- ------------------

Workers'   Compensation  and  Employers  Liability  Insurance  -  Contractor  or
- -------------------------------------------------------------
subcontractor,  shall maintain  Workers'  Compensation and Employer's  Liability
Insurance of the state in which the services are to be performed.

         a) A  Contractor  or  subcontractor  that is a  legally  permitted  and
         qualified  self-insurer  in  the  state  in  which  services  are to be
         performed,  may furnish proof that it is such a self-insurer in lieu of
         submitting proof of insurance.

         b) Contractor  shall  determine if the work to be performed  under this
         contract  requires  coverage  by  any  Federal  Compensation   statutes
         including,  but not limited to, the  Longshoremen's and Harbor Workers'
         Compensation Act or Jones Act and provide such coverage.

         c) The Commercial  Umbrella and/or Employer's  Liability limits must be
         in an amount not less than the amount for each accident included in the
         workers'  compensation  policy or  separately  obtained in those states
         that do not provide employer liability under the workers'  compensation
         policy.

         (d)  Fidelity  and  blanket  crime  insurance  coverage  with limits of
         $100,000 per occurrence.

Commercial  General and Umbrella  Liability  Insurance - Commercial  general and
- ------------------------------------------------------
umbrella  liability  insurance  with a limit of not less  than  $2,000,000  each
occurrence.

Commercial   Umbrella  Liability   Insurance  -  Commercial  umbrella  liability
- --------------------------------------------
insurance with a limit of not less than $2,000,000 each occurrence.

Professional Liability Insurance - Professional liability insurance with a limit
- --------------------------------
of not less than $1,000,000  each  occurrence and aggregate.  This is to provide
coverage for claims  arising out of the  performance  of  professional  services
under this  contract and caused by any error,  omission,  or  negligent  act for
which Contractor is held liable.  Contractor shall maintain this insurance for a
minimum period of five years after the completion of the contract.

(The  Professional   liability  insurance   requirement  is  applicable  if  the
Contractor or  subcontractor  performs  professional  services for any reason as
part of this contract.)

Contractor, or any subcontractor,  will not be permitted to bring its employees,
materials, or equipment on the site until National Fuel receives from Contractor
a copy of acceptable  certificates of insurance.  Such certificates  shall state
that the insurance  carrier has issued the policies  providing for the insurance
specified  herein,  that such  policies are in force,  that  National Fuel is an
additional insured under the insurance, and that the insurance carrier will give
National Fuel sixty (60) days prior written notice of any material change in, or
cancellation  of, such policies.  If such insurance  policies are subject to any
exceptions to the terms specified herein,  such exceptions shall be explained in
full in  such  certificates.  National  Fuel  may,  at its  discretion,  require
Contractor,  or any  subcontractor,  to obtain  insurance  policies that are not
subject to any exceptions.




- --------------------------------------------------------------------------------
FAILURE TO MAINTAIN THE INSURANCE  COVERAGE  PROVIDED HEREIN THROUGHOUT THE LIFE
OF  THIS  AGREEMENT  SHALL  CONSTITUTE  A  BREACH  OF THE  AGREEMENT.  IT IS THE
CONTRACTOR'S  OBLIGATION TO PROVIDE  NATIONAL FUEL WITH CURRENT  CERTIFICATES OF
INSURANCE.
- --------------------------------------------------------------------------------

           14.  CONFIDENTIALITY.  In  implementing  all phases of this  project,
Contractor,  its  officers,   representatives,   employees,  and  any  permitted
subcontractors  (collectively,  the  "Authorized  Persons"),  shall maintain all
information  gathered,  developed or communicated  to the Authorized  Persons by
Distribution  Corporation in connection  with the work performed  hereunder (the
"Information")  in  a  confidential   manner,   whether  or  not  identified  as
confidential by Distribution Corporation.  Contractor agrees that neither it nor
the Authorized Persons will duplicate, distribute, disclose or otherwise provide
the  Information to anyone without prior written  authorization  of Distribution
Corporation. Upon termination of this Agreement, Contractor agrees to return the
information to Distribution Corporation.

           15.  COMMUNICATIONS.  All notices and other communications under this
Agreement shall be deemed  effectively made or given if written and delivered to
the appropriate party at the addresses specified below.

                  a.       With respect to Contractor:

                             Paul E. Donnelly
                             Data-Track Account Services, Inc.
                             160 Holtz Drive, Suite 300
                             Cheektowaga, NY  14225


                  b.       With respect to Distribution Corporation:

                             Darryl Gorski
                             Revenue Recovery Department
                             National Fuel Gas Distribution Corporation
                             Appletree Business Park
                             2875 Union Road
                             Cheektowaga, New York  14227

           16.  AUDIT.  Distribution  Corporation  shall  have the  right,  upon
reasonable   notice,   to  examine  and  audit  all  of   Contractor   (and  any
Subcontractor)  billings and all of the backup support data for those  billings.
Contractor  (and  Subcontractors)  shall  make  available  said  information  to
Distribution  Corporation,   upon  request,  at  the  office  of  Contractor  or
Subcontractor.

           17. COMPLIANCE WITH APPLICABLE LAWS. Contractor agrees to comply with
all applicable federal, state and local laws, rules, regulations, administrative
and  executive  orders in its  performance  under  the terms of this  Agreement,
including but not limited to the following:

           (a)  New York General Business Law, Article 29-H, Sections 600 - 603;

           (b)  Fair Debt Collection Practices Act, 15 U.S.C. Section 1692 et
                seq.

           (c)  Pennsylvania Consolidated Statutes, 18 Pa. C.S.A. Section 7311,
                and 73 Pa. C.S.A. Sections 201-1 to 201-8.

           18. SOCIAL SECURITY AND FAIR LABOR  STANDARDS.  Contractor  covenants
and agrees that it and any of its  subcontractors  are bound by and will observe
and perform all duties  required  under the Social  Security  Act and the United
States Fair Labor  Standards Act, and all other  applicable  local,  state,  and
federal laws, ordinances, and regulations.

           19. EQUAL EMPLOYMENT  OPPORTUNITY.  The Equal Employment  Opportunity
clause in  Section  202,  Paragraphs  1 through 7 of  Executive  Order  11246 as
amended;  and Section 503 of Title V, as amended,  relative to equal  employment
opportunity;  and Section 12102 of the Americans with  Disabilities Acts of 1990
relating  to equal  employment  opportunities;  and the  implementing  Rules and
Regulations  of the  Office of Federal  Contracts  Compliance  are  incorporated
herein by specific reference.

           20. WARRANTY OF AUTHORITY.  Contractor warrants that it is authorized
to do business in the State of New York.  Contractor further warrants that it is
not subject to any  non-competition  agreement  that would be applicable to this
Agreement and/or the services to be performed hereunder.

           21.  Y2K  WARRANTY.  CONTRACTOR  represents  and  warrants  that  all
services  provided under this Agreement will continue to be provided on a timely
basis without interruption from, into and between the twentieth and twenty-first
centuries,  the  years  1999 and 2000 and any and all  leap  years  and  further
provided that such services shall not be interrupted  after the date 12/31/99 or
as a result of the passage or advent of such date.

           22. NON-WAIVER. Failure of either party to act or exercise his rights
under this  Agreement upon the breach of any other items,  hereof,  by the other
party shall not be  construed as a waiver of such a breach or prevent said party
from  thereafter  enforcing  strict  compliance  with any or all of their  terms
thereof.

           23. NON-ASSIGNABILITY. This Agreement may not be assigned without the
express written  consent of the other party.  Any attempted  assignment  without
prior  written  consent  shall be wholly  void and totally  ineffective  for all
purposes. Furthermore, Contractor agrees not to delegate any obligation which it
has under this Agreement  without the prior written  permission of  Distribution
Corporation.  Any attempted  delegation  without said permission shall be wholly
void and totally ineffective for all purposes.

           24.  GOVERNING LAW. This  Agreement  shall be governed by the laws of
the State of New York.

           25. ENTIRE AGREEMENT.  It is understood that the foregoing represents
the entire agreement  between the parties hereto.  This Agreement shall apply to
all  accounts  presently  held by  Contractor  and  shall  supersede  all  prior
agreements and understandings  between Contractor and Distribution  Corporation,
whether written or oral, with respect to the subject hereof. Any modification to
this  Agreement  must  be  agreed  upon in  writing.  If any  provision  of this
Agreement is found to be invalid, void,  unenforceable or prohibited by the laws
of the State of New York,  such  invalidation  shall not  affect  the  remaining
provisions of this Agreement.

           IN WITNESS  WHEREOF,  the parties  hereto have made and entered  into
this Agreement as of the date noted above.

NATIONAL FUEL GAS DISTRIBUTION              DATA-TRACK ACCOUNT
CORPORATION                                 SERVICES, INC.


By:      /s/Joseph F. Kronenwetter            By:    /s/David F. Smith
       -----------------------------               -----------------------------
Name:    Joseph F. Kronenwetter             Name:    David F. Smith
       -----------------------------               -----------------------------
Title:   Asst. Vice President               Title:   Secretary
       -----------------------------               -----------------------------
Date:    March 5, 1999                      Date:    March 8, 1999
       -----------------------------               -----------------------------














                                  PENNSYLVANIA
                            PUBLIC UTILITY COMMISSION
                           Harrisburg, PA. 17105-3265

                                               Public Meeting held May 13, 1999

Commissioners Present:

                  John M. Quain, Chairman
                  David W. Rolka
                  Nora Mead Brownell
                  Aaron Wilson, Jr.


Affiliated Interest Agreement Between                  Docket Number:
National Fuel Gas Distribution Corporation             G-00990679
and Data-Track Account Services, Inc. for
the performance of collection services.


                                      ORDER


BY THE COMMISSION:

                  On April 14, 1999, National Fuel Gas Distribution  Corporation
("NFGD")  filed,  pursuant to Chapter 21 of the Public Utility Code, 66 Pa. C.S.
Ch.21, a Service  Agreement between NFGD and Data-Track  Account Services,  Inc.
("Data-Track").  This  agreement is for the provision of collection  services to
NFGD by Data-Track.

                  NFGD and  Data-Track  are  subsidiaries  of National  Fuel Gas
Company,  organized  under  the  Public  Utility  Holding  Company  Act of 1935.
Data-Track is a licensed and certified collection agency engaged in the business
of providing  collection  services on business accounts.  NFGD desires to retain
Data-Track  to provide the  collection  services  described in the  Agreement to
NFGD.

                  Review  and  analysis  of the  Affiliated  Interest  Agreement
indicate that the terms of the Agreement  appear to be reasonable and consistent
with the public interest. However, approval of the Application does not preclude
the  Commission  from   investigating,   during  any  formal   proceeding,   the
reasonableness of this Application;

THEREFORE,

                  IT IS ORDERED:

                  1. That the Affiliated  Interest  Agreement  between  National
Fuel Gas Distribution  Corporation and Data-Track Account services,  Inc. be and
hereby is approved.

                  2. That approval of the Affiliated Interest Agreement does not
preclude the Commission from  investigating,  during any formal proceeding,  the
reasonableness of any charge brought under the Agreement.

                  3. That Docket No. G-00990679 be market "closed".

                                            BY THE COMMISSION,


                                            /s/ James J. McNulty
                                            ----------------------------------

                                            James J. McNulty
                                            Secretary


(SEAL)

ORDER ADOPTED: May 13, 1999

ORDER ENTERED: MAY 13, 1999


Order Doc. #130822




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