NATIONAL FUEL GAS CO
35-CERT, 2000-02-22
NATURAL GAS DISTRIBUTION
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UNITED STATES OF AMERICA
      Before the
SECURITIES AND EXCHANGE COMMISSION

- --------------------------------------------

In the Matter of
                                                        EIGHTEENTH
NATIONAL FUEL GAS COMPANY                               CERTIFICATE
HORIZON ENERGY DEVELOPMENT, INC.                        PURSUANT TO
                                                        RULE 24

File No. 70-8649
(Public Utility Holding Company Act of 1935)
- --------------------------------------------

         THIS IS TO  CERTIFY,  pursuant to Rule 24,  that  certain  transactions
proposed by National Fuel Gas Company  ("National") and its subsidiary,  Horizon
Energy Development, Inc. ("Horizon") in its Application-Declaration on Form U-1,
as amended  (File No.  70-8649),  have been carried out in  accordance  with the
terms and  conditions  of said  Application-Declaration  and the Order (HCAR No.
35-26364,  dated August 29, 1995) of the Securities and Exchange Commission (the
"Commission") with respect thereto,  and that the following  information for the
quarter ended December 31, 1999 is herein provided:

         1a)      Horizon's  balance  sheet at December  31, 1999 is attached as
                  Exhibit 1.

         1b)      National's  balance  sheet at December 31, 1999 is included in
                  National's  Form 10-Q for the quarter ended  December 31, 1999
                  which was filed with the  Commission  on February 14, 2000 and
                  is incorporated herein by reference.

         2a)      Horizon's income statement for the quarter ended December 31,
                  1999 is attached as Exhibit 2.

         2b)      National's income statement for the quarter ended December 31,
                  1999 is included in National's Form 10-Q for the quarter ended
                  December 1999, which was filed with the Commission on February
                  14, 2000 and is incorporated herein by reference.


<PAGE>


         3)       Recourse  and  non-recourse  debt  securities  issued to third
                  parties by  Intermediate  Companies  during the quarter  ended
                  December 31, 1999.

                  None.

         4)       A general  description of the activities of the Applicants for
                  the quarter  ended  December 31, 1999,  and of the projects in
                  which they or their  subsidiary  companies  have an  ownership
                  interest:

         The  Project  Activities  (as such  term is  defined  in the  aforesaid
         Application-Declaration) that National and Horizon, and subsidiaries of
         Horizon,  were engaged in pursuant to File No. 70-8649,  as of December
         31, 1999, are as follows:

         Horizon, through its wholly owned indirect subsidiaries, Horizon Energy
         Holdings, Inc. and Horizon Energy Development, B. V. (HEDBV), continues
         to own 100% of the capital stock of each of Horizon Energy  Development
         s.r.o.  ("HED")  and  Power  Development  s.r.o.  ("PD").  PD  in  turn
         continues to own 100% of the capital  stock of Telplarna  Kromeriz a.s.
         ("TK").  These  entities  continue to engage in power  development  and
         related activities in the Czech Republic and eastern Europe.

         The only  material  asset  of HED,  PD and TK is the  district  heating
         system of TK, which sells steam heat to its  residential and commercial
         customers  in the city of  Kromeriz,  Czech  Republic.  TK continues to
         investigate   ways  to  convert  the   existing   steam  plant  into  a
         cogeneration  facility,  or  otherwise to generate  electricity  at the
         site.

         As of December 31, 1999, HEDBV owned  approximately  83% of the capital
         stock of Severoceske Teplarny,  a.s. ("SCT"). SCT, directly and through
         its  subsidiaries,  distributes  heat in the northern part of the Czech
         Republic.  SCT,  through one of its  subsidiaries,  also  generates and
         sells power at wholesale in that region.

         As of December  31, 1999 HEDBV owned  approximately  86% of the capital
         stock  of  Prvni  Severozapadni   Teplarenska,   a.s.  ("PSZT").   PSZT
         distributes heat and also generates and sells power at wholesale in the
         northern part of the Czech  Republic.  PSZT is in the final stages of a
         capital  construction  project  involving the construction of fluidized
         steam  generating  boilers.  A portion of the funds  required  for this
         project has been provided by Horizon. None of the funds associated with
         these  transactions  was borrowed  through the National Fuel Gas System
         "Money Pool".

         SCT and PSZT had filed a plan with the  local  Commercial  Court in the
         Czech Republic to merge the companies. The plan of merger was approved,
         and became effective as of January 1, 2000.

         HEDBV,  as a  shareholder  of SCT,  had  received  dividends  from  its
         investment  in the SCT shares.  HEDBV,  as a shareholder  of PSZT,  had
         expected to receive,  in the future,  dividends  from its investment in
         PSZT  shares.  After the  merger,  excess  cash  flow  from the  merged
         companies  is  expected to be directed  toward  debt  reduction.  HEDBV
         expects to receive  dividends in the future from the merged  companies.
         Furthermore, in the future, the merged companies will pursue efforts to
         directly  or  indirectly  develop  additional   electrical   generation
         capacity.

         The aggregate  investment of National and its  subsidiaries in electric
         wholesale  generators and foreign utility companies does not exceed the
         limits set forth in the Commission's Rule 53.

         5)       Information on intercompany service transactions (including
                  those provided at cost and at market rates) involving
                  affiliated Intermediate Companies during the quarter ended
                  December 31, 1999:

                  Neither Horizon nor National engaged in any intercompany
                  service transactions with affiliated Intermediate Companies.



February 28, 2000                     NATIONAL FUEL GAS COMPANY



                                      By:  /s/ Philip C. Ackerman
                                         --------------------------------------
                                         Philip C. Ackerman
                                         President



                                      HORIZON ENERGY DEVELOPMENT,
                                      INC.



                                      By:  /s/ Ronald J. Tanski
                                         --------------------------------------
                                         Ronald J. Tanski
                                         Secretary and Treasurer



                                                                       Exhibit 1
                      HORIZON ENERGY DEVELOPMENT, INC.
                                BALANCE SHEET
                                 (Unaudited)


                                                      At December 31, 1999

ASSETS
Current Assets:
   Cash                                                    $ 10,590,289
   Accounts Receivable - Net                                 11,455,677
   Unbilled Utility Revenue                                   2,685,028
   Materials & Supplies                                       5,758,365
   Prepaid Expenses                                             102,156
                                                        ----------------
Total Current Assets                                         30,591,515
                                                        ----------------

Property, Plant & Equipment                                 273,580,156
   Less:  Reserve for DDA                                    77,796,636
                                                        ----------------
                                                            195,783,520
                                                        ----------------

Other Assets                                                 13,408,155
                                                        ----------------

Total Assets                                              $ 239,783,190
                                                        ================


LIABILITIES AND STOCKHOLDERS EQUITY
Capital Stock $1 Par:
   Shares Authorized, Issued and Outstanding:  4,750            $ 4,750
Paid-in Capital                                              38,245,591
Retained Earnings                                            (4,700,489)
Cumulative Translation Adjustment                           (13,973,055)
                                                        ----------------
Total Stockholders Equity                                    19,576,797
                                                        ----------------

Long-Term Debt, Net of Current Portion                       40,285,369
Long-Term Debt - Intercompany                                90,000,000
                                                        ----------------
Total Long-Term Debt                                        130,285,369
                                                        ----------------

Minority Interest in Foreign Subsidiaries                    26,368,742
                                                        ----------------

Current and Accrued Liabilities:
   Curent Portion of Long-Term Debt                           9,610,850
   Notes Payable - Intercompany                              29,900,000
   Notes Payable to Banks                                     1,395,284
   Accounts Payable                                          13,431,050
   Accounts Payable - Intercompany                            1,898,263
   Federal Income Taxes Payable                              (1,567,983)
   Other Accrued Liabilities                                  1,826,726
                                                        ----------------
Total Current and Accrued Liabilities                        56,494,190
                                                        ----------------

Deferred Credits:
  Accumulated Deferred Income Taxes                           6,586,069
  Other Deferred Credits                                        472,023
                                                        ----------------
Total Deferred Credits                                        7,058,092
                                                        ----------------

Total Liabilities and Stockholders Equity                 $ 239,783,190
                                                        ================


                                                                       Exhibit 2
                           HORIZON ENERGY DEVELOPMENT, INC.
                                   INCOME STATEMENT
                                     (Unaudited)

                                              Three Months Ended
                                               December 31, 1999
                                             ---------------------

Operating Revenues                                    $38,072,822
                                             ---------------------

Operating Expenses:
   Fuel Used in Heat and Electric Generation           17,425,594
   Operation Expense                                    8,038,665
   Maintenance Expense                                      9,466
   Property, Franchise and Other Taxes                    737,171
   Depreciation, Depletion and Amortization             2,888,539
                                             ---------------------
Total Operating Expenses                               29,099,435
                                             ---------------------

Operating Income                                        8,973,387
                                             ---------------------

Other Income                                              531,559
                                             ---------------------

Interest Charges                                        3,892,200
                                             ---------------------

Income Before Income Taxes                              5,612,746
                                             ---------------------

Income Taxes - Current                                 (1,911,617)
                      - Deferred                        1,530,758
                                             ---------------------
                                                         (380,859)
                                             ---------------------

Minority Interest in Foreign Subsidiaries              (1,310,849)
                                             ---------------------

Net Income                                            $ 4,682,756
                                             =====================




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