-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uj3GRwJmSDe/0OBHOSavBV8LupSKqZb2ko7jIxeMuKiVBhoj4nkUtRKScbwYC0UJ eHLOr5RXYX3c9XFfv2hTKg== 0000070145-05-000016.txt : 20050128 0000070145-05-000016.hdr.sgml : 20050128 20050128155118 ACCESSION NUMBER: 0000070145-05-000016 CONFORMED SUBMISSION TYPE: U5S PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20050128 DATE AS OF CHANGE: 20050128 EFFECTIVENESS DATE: 20050128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL FUEL GAS CO CENTRAL INDEX KEY: 0000070145 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 131086010 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0905 FILING VALUES: FORM TYPE: U5S SEC ACT: 1935 Act SEC FILE NUMBER: 030-00358 FILM NUMBER: 05558250 BUSINESS ADDRESS: STREET 1: 6363 MAIN STREET CITY: WILLIAMSVILLE STATE: NY ZIP: 14221-5887 BUSINESS PHONE: 716-857-7000 MAIL ADDRESS: STREET 1: 6363 MAIN STREET STREET 2: 6363 MAIN STREET CITY: WILLIAMSVILLE STATE: NY ZIP: 14221-5887 U5S 1 u5s2004.htm 2004 FORM U5S ANNUAL REPORT Form u5s dated september 30, 2004

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.


FORM U5S

ANNUAL REPORT

For the Fiscal Year Ended September 30, 2004


Filed Pursuant to the

Public Utility Holding Company Act of 1935

by

National Fuel Gas Company

6363 Main Street, Williamsville, N.Y. 14221


NATIONAL FUEL GAS COMPANY

FORM U5S - ANNUAL REPORT

For the Fiscal Year Ended September 30, 2004

TABLE OF CONTENTS

                                                                          Page

ITEM  1.  SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF
          SEPTEMBER 30, 2004                                                3

ITEM  2.  ACQUISITIONS OR SALES OF UTILITY ASSETS                           9

ITEM  3.  ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF
          SYSTEM SECURITIES                                                 9

ITEM  4.  ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM
          SECURITIES                                                       10

ITEM  5.  INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES                 11

ITEM  6.  OFFICERS AND DIRECTORS
          Part   I.  Names, principal business address and
                     positions held as of September 30, 2004               12
          Part  II.  Financial connections as of September 30, 2004        17
          Part III.  Compensation and other related information            17

ITEM  7.  CONTRIBUTIONS AND PUBLIC RELATIONS                               22

ITEM  8.  SERVICE, SALES AND CONSTRUCTION CONTRACTS
          Part   I.  Intercompany sales and services
                     (1)  Salaries of officers of the Registrant           23
                     (2)  Services rendered by Statutory Subsidiaries      24
                     (3)  Services rendered by Registrant                  37
          Part  II.  Contracts to purchase services or goods
                     between any System company and any affiliate          38
          Part III.  Employment of any person by any System
                     company for the performance on a continuing
                     basis of management services                          38

ITEM  9.  WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES               38

ITEM 10.  FINANCIAL STATEMENTS AND EXHIBITS
          Financial Statements (Index)                                     41
          Exhibits                                                        114

SIGNATURE                                                                 129


ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2004
                           Number of Common  Percent of    Issuer    Owner's
Name of Company              Shares Owned   Voting Power Book Value Book Value
- ---------------            ---------------- ------------ ---------- ----------

Registrant:                                             (Thousands of Dollars)
National Fuel Gas Company
(Parent, Company or Registrant)          -            -           -          -

Statutory Subsidiaries:
 National Fuel Gas Distribution
  Corporation (Distribution
  Corporation) (Note 1)              2,000         100%    $558,630   $558,630
    Unsecured Debt (Note 9)              -            -    $363,410   $363,410

 National Fuel Gas Supply
  Corporation (Supply
  Corporation) (Note 2)          1,013,802         100%    $336,514   $336,514
    Unsecured Debt (Note 9)              -            -    $ 72,970   $ 72,970

 Seneca Resources Corporation
  (Seneca Resources) (Note 3)      100,000         100%    $ 87,137   $ 87,137
    Unsecured Debt (Note 9)              -            -    $688,422   $688,422
  3062782 Nova Scotia Co.
    (NSULC1) (Note 3)          165,350,317         100%    $(41,042)  $(41,042)
    Unsecured Debt (Note 9)              -            -    $144,907   $144,907
   Seneca Energy Canada Inc.
    (Note 3)                    10,597,289         100%    $108,741   $108,741
  Seneca Player Corp.
    (Note 3)                             1         100%    $  3,113   $  3,113
   3062783 Nova Scotia Co.
     (NSULC2) (Note 3)           2,124,467         100%    $   (226)  $   (226)
    Unsecured Debt (Note  9)             -            -    $  1,890   $  1,890
  Empire Exploration Company,
    Empire 1983 Drilling
    Program, Empire 1983
    Joint Venture (Note 10)            N/A         N/A     $    970   $    970

 Highland Forest Resources, Inc.
  (Highland) (Note 4)                  351         100%    $120,393   $120,393
  Unsecured Debt (Note 9)                -            -    $ 71,600   $ 71,600
  Empire State Pipeline Company,
   LLC (Empire LLC) (Note 4)           N/A         100%    $137,618   $137,618
     Empire State Pipeline
      (Empire) (Note 4)                N/A          50%    $ 42,414   $ 42,414
  St. Clair Pipeline Company,
   LLC (St. Clair LLC) (Note 4)        N/A         100%    $ 42,666   $ 42,666
     Empire State Pipeline
      (Empire) (Note 4)                N/A          50%    $ 42,413   $ 42,413
       Secured Debt                      -            -    $ 41,433   $ 41,433

 Data-Track Account Services,
  Inc. (Data-Track) (Note 5)         1,000         100%    $    763   $    763

 Leidy Hub, Inc. (Leidy Hub)
  (Note 6)                           4,000         100%    $     48   $     48

 National Fuel Resources, Inc.
 (NFR) (Note 7)                     10,000         100%    $ 42,799   $ 42,799

 Horizon Energy Development, Inc.
  (Horizon) (Notes 8 and 11)         4,750         100%    $ 56,835   $ 56,835
    Unsecured Debt (Note 9)              -            -    $124,470   $124,470
  Horizon Energy Holdings, Inc.
   (HEHI) (Note 11)                  2,000         100%    $184,582   $184,582


ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2004 (Continued)
                           Number of Common  Percent of    Issuer    Owner's
Name of Company              Shares Owned   Voting Power Book Value Book Value
- ---------------            ---------------- ------------ ---------- ----------

Registrant:                                             (Thousands of Dollars)

     Horizon Energy Development
      B.V. (HED B.V.) (Note 11)        400         100%    $185,042   $185,042
      Horizon Energy Bulgaria Ltd.
       (HEB Ltd.) (Note 11)            N/A         100%       $(369)     $(369)
       Sofia Energy EAD
        (SE AD) (Note 11)              N/A         100%       $(412)     $(412)

         United Energy, a.s.
       (UE) (Note 11)            8,475,419       85.16%    $183,614   $183,614
        Unsecured Debt (Note 9)          -            -    $  9,854   $  9,854
       Teplarna Liberec, a.s.
        (TL) (Note 11)                  70          70%    $ 11,805   $ 11,805
       Lounske tepelne
        Hospodarstvi, s.r.o
        (LTH) (Note 11)                N/A         100%    $     78   $     78
       ENOP Company, s.r.o.
         (ENOP)(Note 11)               N/A         100%    $    394   $    394
      Horizon Energy Development,
       s.r.o. (HED) (Note 11)          N/A         100%    $  1,442   $  1,442
      Montenero Energia s.r.l.
       (ME) (Note 11)                  N/A          50%    (Note 11)  (Note 11)

 Horizon LFG Inc. (Horizon LFG)
  (Note 12)                          1,000         100%    $ (1,272)  $ (1,272)
    Unsecured Debt (Note 9)              -            -    $ 43,500   $ 43,500
   Toro Partners, LLC
    (Toro LLC) (Note 12)               N/A         100%    $   (282)   $  (282)
    Unsecured Debt (Note 9)              -            -    $ 43,000   $ 43,000
   Toro Partners, LP
    (Toro LP) (Note 12)                N/A         100%    $ 42,980   $ 42,980
   Toro Energy of Michigan, LLC        N/A         100%    $  4,448   $  4,448
   Toro Energy of Ohio-Statewide, LLC  N/A         100%    $     45   $     45
   Toro Energy of Ohio, LLC            N/A         100%    $  7,341   $  7,341
   Toro Energy of Kentucky, LLC        N/A         100%    $  4,003   $  4,003
   Toro Energy of Missouri, LLC        N/A         100%    $  6,373   $  6,373
   Toro Energy of Maryland, LLC        N/A         100%    $  4,243   $  4,243
   Toro Energy of Indiana, LLC         N/A         100%    $  5,582   $  5,582
   Toro Energy of Ohio-American, LLC   N/A         100%    $ 15,553   $ 15,553

 Horizon Power, Inc. (Power)
   (Note 13)                           500         100%    $  4,596   $  4,596
   Unsecured Debt (Note 9)               -            -    $ 17,200   $ 17,200
   Seneca Energy II, LLC
     (Seneca Energy)                   N/A          50%    (Note 13)  (Note 13)
   Model City Energy, LLC
     (Model City)                      N/A          50%    (Note 13)  (Note 13)


ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2004 (Continued)
                           Number of Common  Percent of    Issuer    Owner's
Name of Company              Shares Owned   Voting Power Book Value Book Value
- ---------------            ---------------- ------------ ---------- ----------

Registrant:                                             (Thousands of Dollars)


   Energy Systems North East, LLC
     (ESNE)                            N/A          50%    (Note 13)  (Note 13)
Notes:
 (1)    Distribution Corporation is a public utility that sells natural gas and provides gas transportation
        service in western New York and northwestern Pennsylvania.

 (2)    Supply Corporation is engaged in the transportation and storage of natural gas for affiliated and
        nonaffiliated companies.

 (3)    Seneca Resources is engaged in the exploration for, and the development and purchase of, natural gas and
        oil reserves in California, in the Appalachian region of the United States, and in the Gulf Coast region
        of Texas, Louisiana, and Alabama.  Also, exploration and production operations are conducted in the
        provinces of Alberta, Saskatchewan and British Columbia in Canada by Seneca's wholly-owned subsidiary,
        Seneca Energy Canada, Inc. (SECI), an Alberta, Canada corporation, formerly Player Resources Ltd.
        (Player).  Seneca Resources owns 100% of the common stock of 3062782 Nova Scotia Co. (NSULC1), a Nova
        Scotia unlimited liability company, which in turn owns 100% of the common stock of SECI.  Other
        sub-entities owned directly or indirectly by Seneca Resources include 3062783 Nova Scotia Co. (NSULC2), a
        Nova Scotia unlimited liability company, and Seneca Player Corp. (SPC), a U.S. corporation.  Seneca
        Resources also owns interests in two gas processing plants, one at Roystone, Pennsylvania and the other
        at Kane, Pennsylvania, and two tax partnerships, Vermillion 252 and Vermillion Block 253 Tax
        Partnership.  Seneca Resources is also a general partner of the following limited partnerships engaged in
        exploration and production activities: Kidder Energy Joint Venture 1990-A, L.P., Kidder Energy Joint
        Venture 1990-B, L.P., Kidder Energy Joint Venture 1991-A, L.P., and Kidder Busti Energy Joint Venture
        L.P.  SECI owns Briar Resource Projects Ltd., an Alberta, Canada corporation that is general partner of,
        and owns a 55.5% interest in, Briar Oil & Gas Limited Partnership (Briar LP), an Alberta, Canada limited
        partnership engaged in exploration and production activities.  SECI also owns Carbonex Oil & Gas Ltd., an
        Alberta, Canada corporation that is general partner of, and owns a 41.1% interest in, Carbon Resources
        Limited Partnership (Carbon LP), also an Alberta, Canada limited partnership engaged in exploration and
        production activities.  The limited partners of Briar LP and Carbon LP are not subsidiaries of the
        Registrant.

(4)     Highland operates several sawmills and kilns in northwestern Pennsylvania and processes timber from
        north-central Pennsylvania, primarily high quality hardwoods.  Highland also owns 100% of Empire State
        Pipeline, LLC (Empire LLC) and 100% of St. Clair Pipeline LLC (St. Clair LLC).  Each of these companies
        has 50% ownership of Empire State Pipeline (Empire), which is a joint venture.  Empire owns a 157-mile
        pipeline that extends from the United States/Canadian border at the Niagara River near Buffalo, New York
        to near Syracuse, New York.  The Registrant owns 100% of the voting stock of Highland, and has a 35%
        ownership interest in Highland.  Seneca Resources has a 65% non-voting ownership interest in Highland.
        The book value of Seneca Resources investment in Highland is $19,035,000.

ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2004 (Continued)
 (5)    Data-Track provides collection services (principally issuing collection notices) primarily for the
        subsidiaries of the Company.

 (6)    Leidy Hub is a New York corporation formed to provide various natural gas hub services to customers in
        the eastern United States.

 (7)    NFR markets natural gas to industrial, commercial, public authority and residential end-users in western
        and central New York and northwestern Pennsylvania, offering competitively priced energy and energy
        management services for its customers.

 (8)    Horizon was formed to engage in foreign and domestic energy projects through investment in various
        business entities (see Notes 11-12).

 (9)    Unsecured debt is presented on pages 7-8.

(10)    In December 1983, Empire Exploration, Inc. (which was subsequently merged into Seneca Resources)
        established a drilling fund through a series of limited partnerships in which it acts as general partner
        (See File No.  70-6909).  Empire Exploration, Inc.'s aggregate investment in all three limited
        partnerships amounted to $970,150.

(11)    Horizon owns 100% of the capital stock of HEHI, a New York corporation which owns 100% of HED B.V.  HED
        B.V. in turn owns 100% of the ownership interests of HED (a Czech limited liability company).  HED B.V.
        owns 85.16% of United Energy, a.s. (UE).  UE owns 100% of the ownership interests of ENOP and LTH and 70%
        of the ownership interest of TL.  All UE subsidiaries are Czech corporations or limited liability
        companies.  HED B.V. and its subsidiaries are primarily engaged in district heating and power generation
        operations in the Czech Republic.  In August 2002, HED B.V. formed Horizon Energy Bulgaria Ltd., a
        Bulgarian limited liability company, which in turn formed Sofia Energy, EAD, a Bulgarian joint stock
        company, in July 2003.  Sofia Energy EAD is pursuing a power generation project in and around the city of
        Sofia, Bulgaria.  In November 2002, HED B.V. formed Montenero Energia s.r.l., an Italian limited
        liability company, which is pursuing a power generation project in Italy near the town of Montenero di
        Bisaccia.

(12)    Horizon LFG (Formerly Upstate Energy, Inc.) is a New York corporation engaged, through subsidiaries, in
        the purchase, sale and transportation of landfill gas in Ohio, Michigan, Kentucky, Missouri, Maryland and
        Indiana.  Horizon LFG and Toro Partners, LLC (Toro LLC), a wholly-owned subsidiary of Horizon LFG, own
        all of the partnership interests in Toro Partners, LP (Toro LP), a limited partnership which owns and
        operates eight short-distance landfill gas pipeline companies.  Horizon LFG is the general partner of
        Toro LP and owns a 1% general partnership interest in Toro LP; Toro LLC is the limited partner and owns a
        99% limited partnership interest in Toro LP.


ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2004 (Continued)
(13)    Power is a New York corporation designated as an "exempt wholesale generator" under the Public Utility
        Holding Company Act of 1935 and is developing or operating, through its subsidiaries, mid-range
        independent power production facilities.

        Power owns a 50% limited liability company interest in each of Seneca Energy II, LLC, a New York limited
        liability company formed in February 2000 (Seneca Energy), Model City Energy, LLC, a New York limited
        liability company formed in February 2000 (Model City), and Energy Systems North East, LLC, a Delaware
        limited liability company formed in September 2000 (ESNE).  "Issuer Book Value" and "Owner's Book Value"
        for Seneca Energy, Model City and ESNE are filed pursuant to Rule 104(b).



Note (9) Unsecured Debt

                                                Principal    Issuer      Owner's
Name of Company                                  Amount       Book        Book
   (Issuer)      Security Owned by Registrant     Owed        Value       Value
- ---------------  ----------------------------   ---------    -------     -------
                                                    (Thousands of Dollars)
                                           --------------------------------
Distribution
 Corporation     Intercompany Notes:
                   5.35% Due March 1, 2013         90,000       90,000      90,000
                   6.79% Due September 15, 2022    29,310       29,310      29,310
                   7.46% Due March 30, 2023        49,000       49,000      49,000
                   7.50% Due June 13, 2025         50,000       50,000      50,000
                   1.852% System Money Pool(1)    145,100      145,100     145,100
                                                  -------      -------     -------
                                                  363,410      363,410     363,410
                                                  -------      -------     -------

Supply
 Corporation     Intercompany Notes:
                   5.35% Due March 1, 2013         30,000       30,000      30,000
                   6.79% Due September 15, 2022     9,770        9,770       9,770
                   1.85% System Money Pool (1)     33,200       33,200      33,200
                                                   ------       ------      ------
                                                   72,970       72,970      72,970
                                                   ------       ------      ------

ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2004 (Concluded)
Seneca
 Resources       Intercompany Notes:
                   6.39% Due May 27, 2008         120,000      120,000     120,000
                   6.18% Due March 1, 2009        100,000      100,000     100,000
                   7.70% Due October 22, 2010     200,000      200,000     200,000
                   6.82% Due November 21, 2011    120,000      120,000     120,000
                   5.35% Due March 1, 2013        100,000      100,000     100,000
                   6.79% Due September 15, 2022    48,422       48,422      48,422
                                                  -------      -------     -------
                                                  688,422      688,422     688,422
                                                  -------      -------     -------


NSULC1             0.00% Revolving Demand Loan    144,907      144,907     144,907
NSULC2             0.00% Revolving Demand Loan      1,890        1,890       1,890
                                                  -------      -------     -------
                                                  146,797      146,797     146,797
                                                  -------      -------     -------


Highland           6.82% Due November 21, 2011     30,000       30,000      30,000
                   5.35% Due March 1, 2013         30,000       30,000      30,000
                   1.85% System Money Pool(1)      11,600       11,600      11,600
                                                   ------       ------      ------
                                                   71,600       71,600      71,600
                                                   ------       ------      ------

Horizon          Intercompany Notes:
                   6.39% Due May 27, 2008          80,000       80,000      80,000
                   6.79% Due September 15, 2022     9,770        9,770       9,770
                   1.76% Line of credit(2)         34,700       34,700      34,700
                                                  -------      -------     -------
                                                  124,470      124,470     124,470
                                                  -------      -------     -------

UE                 6.35% Payable Quarterly
                    Through September 2006          9,854        9,854       9,854
                                                  -------      -------     -------

Horizon LFG        1.85% System Money Pool(1)      43,500       43,500      43,500
                                                  -------      -------     -------

Toro Partners, LLC 1.85% Line of Credit            43,000       43,000      43,000
                                                  -------      -------     -------

Horizon
 Power Inc.        1.84% Line of Credit(2)         17,200       17,200      17,200
                                               ----------   ----------  ----------

                                               $1,581,223   $1,581,223  $1,581,223
                                               ==========   ==========  ==========


 (1)   Interest rate represents weighted average of all short-term securities outstanding at September
       30, 2004, pursuant to System money pool arrangement, S.E.C. File No. 70-10074, (Release No.
       35-27600).

 (2)   Interest rate represents the rate paid by respective subsidiaries on line of credit amounts
       outstanding at September 30, 2004.


ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS

      None during fiscal year ended September 30, 2004.

ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES

1.    Name of Issuer:  Horizon Energy Development, Inc.
      Description of Security:  Line of Credit Agreement with maximum draw of
                                         $40,000,000
      Effective Average Interest Rate:  1.30%
      Name of Person to Whom Issued:  National Fuel Gas Company
      End of Year Balance:  $34,700,000
      Highest Balance During Year:  $36,400,000
      Exemption:  Rule 52

2.    Name of Issuer:  Horizon Energy Bulgaria Ltd.
      Description of Security:  Line of Credit Agreement with maximum draw of
                                           $35,000,000
      Effective Average Interest Rate:  3.29%
      Name of Person to Whom Issued:  Horizon Energy Development B.V.
      End of Year Balance:  $399,224
      Highest Balance During Year:  $399,224
      Exemption:  Rule 52

3.    Name of Issuer:  Horizon Energy Bulgaria Ltd.
      Description of Security:  Line of Credit Agreement with maximum draw of
                                            CZK 30,000,000
      Effective Average Interest Rate:  1.65%
      Name of Person to Whom Issued:  Horizon Energy Development, s.r.o.
      End of Year Balance:  CZK 1,991,182 ($78,480) at September 30, 2004
                                            USD/CZK exchange rate of 25.3720
      Highest Balance During Year:  CZK 1,991,182
      Exemption:  Rule 52

4.    Name of Issuer:  Horizon Power, Inc.
      Description of Security:  Line of Credit Agreement with maximum draw of   $35,000,000
      Effective Average Interest Rate:  1.34%
      Name of Person to Whom Issued:  National Fuel Gas Company
      End of Year Balance:  $17,200,000
      Highest Balance During Year:  $18,800,000
      Exemption:  Rule 52

5.    Name of Issuer:  Toro Partners LLC
      Description of Security:  Line of Credit Agreement with maximum draw of   $55,000,000
      Effective Average Interest Rate:  1.25%
      Name of Person to Whom Issued:  Horizon LFG, Inc.
      End of Year Balance:  $43,000,000
      Highest Balance During Year:  $48,000,000
      Exemption:  Rule 52

ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURTIES

     FISCAL YEAR ENDED SEPTEMBER 30, 2004.

                                       Name of
                                       Company
                                      Acquiring,
                                      Redeeming         Number of Shares or
                                     or Retiring          Principal Amount                       Commission
Name of Issuer and Title of Issue     Securities    Acquired  Redeemed   Retired Consideration  Authorization
- ---------------------------------    -----------    --------  --------   ---------------------  -------------
                                                              (Thousands of Dollars)
                                                    ------------------------------------------
Registered Holding Company:

    Registrant:

     6.82% Note maturing
      August 1, 2004                     Registrant                       100,000  100,000         Paid at
                                                                                                  Maturity


     6.50% Note maturing
      September 15, 2022                 Registrant                 128                128        Rule 42

     7.75% Note maturing
      February 1, 2004                   Registrant                       125,000  125,000        Paid at
                                                                                                 Maturity


Subsidiaries of Registered Holding Company:

    Seneca Resources*:
     6.95% Note maturing                 Seneca
      August 1, 2004                     Resources                         50,000   50,000         Paid at
                                                                                                  Maturity


     6.79% Note maturing                 Seneca
      September 15, 2022                 Resources                  128                128         Rule 52


    Distribution Corporation:
     7.99% Note maturing                 Distribution
      February 1, 2004                   Corporation                      100,000  100,000         Paid at
                                                                                                  Maturity


    Supply Corporation:
     6.95% Note maturing                 Supply
      August 1, 2004                     Corporation                       50,000   50,000         Paid at
                                                                                                  Maturity

     7.99% Note maturing                Supply                             25,000   25,000         Paid at
      February 1, 2004                  Corporation                                               Maturity


ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES

At September 30, 2004, Seneca Resources owned 277,408 shares of common stock of Touchstone Resources USA, Inc. ("Touchstone"), or 0.5% of Touchstone's issued and outstanding common stock (owner's book value of $291,278). Touchstone is engaged in oil and gas exploration and production activities.

Distribution Corporation and NFR hold stock certificates obtained in bankruptcy distributions applicable to obligations of customers (Distribution Corporation, 15; NFR, 1) incurred in the ordinary course of business.


ITEM 6. OFFICERS AND DIRECTORS

Part I. Names, principal business address and positions held as of September 30, 2004
                                        Names of System Companies with Which Connected




                                                            National       National               Highland
                                                             Fuel Gas       Fuel Gas     Seneca     Forest
                                                           Distribution      Supply     Resources  Resources
                                           Registrant          Corp.          Corp.       Corp.*     Inc.**
                                         ----------      ------------     --------    ---------   ---------
P. C. Ackerman   Williamsville, NY (1) |COB,CEO,D,P,  s |      COB, D, s |  COB, D, s | COB, D, s |COB, D, s |
B. S. Lee            Sun Lakes, AZ (2) |          D, df |              - |          - |         - |        - |
G. L. Mazanec          Houston, TX (3) |          D, df |              - |          - |         - |        - |
J. F. Riordan      Des Plaines, IL (17)|          D, df |              - |          - |         - |        - |
R. T. Brady        East Aurora, NY (4) |          D, df |              - |          - |         - |        - |
R E. Kidder          Jamestown, NY (24)|          D, df |              - |          - |         - |        - |
R D. Cash       Salt Lake City, UT (27)|          D, df |              - |          - |         - |        - |
J. R. Peterson   Williamsville, NY (1) |          AS, s |              - |      GC, s |         - |        - |
J. A. Beck             Houston, TX (5) |              - |              - |          - |   D, P, s |     P, D |
D. P. Butler           Houston, TX (5) |              - |              - |          - |      S, s |        S |
T. L. Atkins           Houston, TX (5) |              - |              - |          - |  T, AS, s |        T |
B. L. McMahon          Houston, TX (5) |              - |              - |          - |    SVP, s |        - |
A. M. Cellino    Williamsville, NY (1) |           S, s |      SVP, S, s |       D, s |         - |        - |
P. M. Ciprich    Williamsville, NY (1) |              s |      AS, GC, s |          - |         - |        - |
B. H. Hale       Williamsville, NY (1) |              - |              - |          - |         - |        - |
J. R. Pustulka   Williamsville, NY (1) |              - |              s |  D, SVP, s |         - |        - |
J. D. Ramsdell   Williamsville, NY (1) |              - |      D, SVP, s |          s |         - |        - |
D. J. Seeley     Williamsville, NY (1) |              - |         SVP, s |    P, D, s |         - |        - |
D. F. Smith      Williamsville, NY (1) |              - |        P, D, s |     SVP, s |         D |        - |
R. J. Tanski     Williamsville, NY (1) |           T, s |   D, SVP, T, s |     T,S, s |         s |        s |
C. M. Carlotti            Erie, PA (16)|              - |          VP, s |          s |         - |        - |
D. L. DeCarolis  Williamsville, NY (12)|              - |              - |          - |         - |        - |
R. E. Klein      Williamsville, NY (1) |              - |          AC, s |          s |         s |        s |
S. Wagner        Williamsville, NY (1) |              s |          VP, s |          s |         s |        s |
B. Heine         Williamsville, NY (1) |              - |         AVP, s |          - |         - |        - |
J. Lesch               Buffalo, NY (18)|              - |         AVP, s |          s |         - |        - |
D. Wassum        Williamsville, NY (1) |              - |              - |          - |         - |        - |
K. Camiolo       Williamsville, NY (1) |           C    |           C, s |        C,s |         s |        s |
D. Bauer         Williamsville, NY (1) |              - |          AT, s |          s |         s |        s |



                                      Position Symbol Key
              COB - Chairman of the Board of Directors  df - Director's Fees
              CEO - Chief Executive Officer              S - Secretary
              CFO - Chief Financial Officer             AS - Assistant Secretary
                P - President                            C - Controller
              EVP - Executive Vice President            AC - Assistant Controller
              SVP - Senior Vice President                D - Director
               VP - Vice President                       s - Salary
              AVP - Assistant Vice President             T - Treasurer
               GC - General Counsel                     AT - Assistant Treasurer

See page 16 for Notes.





  Data-
  Track       National      Horizon
  Account       Fuel        Energy                   Horizon     Horizon
 Services,   Resources,   Development,  Leidy Hub,   LFG,         Power
   Inc.         Inc.        Inc.***        Inc.      Inc. ****  Inc.*****
 ---------   ----------   ------------  ----------   ---------  ----------
COB, P, D, s|         s  |     P, D, s |    COB, D |        s |      s       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        D |      -       |
       S,T  |          - |           - |         - |        S |      S,T     |
          - |          - |           - |         - |        T |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |       VP, s |         - |      P,s |    D,P,s     |
          - |          - |           - |SVP,S,D    |        - |      -       |
          s |          s |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          D |          - |           - |         - |        - |        D     |
          - |          s |      T,S  s |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |D, S, VP, s |           - |         - |        - |      -       |
          - |          s |           - |         - |        - |      -       |
          - |          s |           s |         - |        s |      s       |
          - |          - |           - |         - |        - |      -       |
          - |          - |           - |         - |        - |      -       |
          - |          - |      AVP, s |         - |      AVP |      AVP     |
          - |          s |           - |         - |        - |      -       |
          - |          s |           - |         - |        - |      -       |


* Officers and directors of Seneca Resources' subsidiaries as of September 30, 2004 were as follows:


Seneca Energy Canada, Inc. Board of Directors and Officers: P. C. Ackerman (Director) Williamsville, NY (1) J. A. Beck (Director) Houston, TX (5) D. H. Ibach (President and Director) Calgary, Alberta (19) S. Bridge (Vice President and Director) Calgary, Alberta (19) D. P. Butler (Assistant Secretary) Houston, TX (5) J. G. Campbell (Vice President) Calgary, Alberta (19) C. S. Sawyer (Vice President) Calgary, Alberta (19) Seneca Player Corp. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) D. P. Butler (Secretary and Director) Houston, TX (5) T. L. Atkins (Treasurer) Houston, TX (5) 3062782 Nova Scotia Co. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) T. L. Atkins (Secretary) Houston, TX (5) 3062783 Nova Scotia Co. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) T. L. Atkins (Director) Houston, TX (5) ** Officers and directors of Highland's subsidiaries as of September 30, 2004 were as follows: Empire State Pipeline D. J. Seeley (President) Williamsville, NY (1) R. C. Kraemer (Vice President) Williamsville, NY (1) R. J. Tanski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) Empire State Pipeline Company, LLC D. J. Seeley (Manager and President) Williamsville, NY (1) R. J. Tanski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) St.Clair Pipeline Company, LLC D. J. Seeley (Manager and President) Williamsville, NY (1) R. J. Tanski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) *** Officers and directors of Horizon's subsidiaries as of September 30, 2004 were as follows: Horizon Energy Holdings, Inc. Board of Directors and Officers: P. C. Ackerman (Director and President) Williamsville, NY (1) B. H. Hale (Vice President) Williamsville, NY (1) R. J. Tanski (Secretary and Treasurer) Williamsville, NY (1) Horizon Energy Development, B.V. Managing Directors: B. H. Hale Williamsville, NY (1) Intra Beheer B.V. Amsterdam, The Netherlands (8) Horizon Energy Development, s.r.o. Managing Director: B. H. Hale Williamsville, NY (1) Statutory Agents: V. Miskovsky Prague, Czech Republic (7) See Page 16 for Notes


Teplarna Liberec, a.s.
Board of Directors:
 S. Cvrcek                                                           Liberec, Czech Republic (21)
 Z. Kozesnik                                                         Liberec, Czech Republic (10)
 J. Krutsky                                                          Liberac, Czech Republic (20)
 J. Masinda                                                          Prague, Czech Republic (7)
 V. Miskovsky                                                        Prague, Czech Replublic (7)
 L. Zapletal                                                         Most, Czech Republic (14)

Lounske tepelne hospodarstvi, s.r.o.
Statutory Agents:
 J. Bores                                                            Most, Czech Republic (14)
 F. Jicha                                                            Louny, Czech Republic (26)

United Energy, a.s.
Board of Directors:
 L. Zapletal                                                         Most, Czech Republic (14)
 B. H. Hale                                                          Williamsville, NY (1)
 P. C. Ackerman                                                      Williamsville, NY (1)
 R. J. Tanski                                                        Williamsville, NY (1)
 J. Sulc                                                             Usti nad Labem, Czech Republic (22)
 E. Volkman                                                          Louny, Czech Republic (23)
 J. Masinda                                                          Prague, Czech Republic (7)
 D. A. Wassum                                                        Williamsville, NY (1)

ENOP, s.r.o.
Statutory Agents:
 R. Kocar                                                            Most, Czech Republic (14)
 P. Mares                                                            Most, Czech Republic (14)

Horizon Energy Bulgaria Ltd.
Manager:
 B. H. Hale                                                          Williamsville, NY (1)

Sofia Energy EAD
 D. A. Wassum (Director)                                             Williamsville, NY (1)
 B. H. Hale (Director)                                               Williamsville, NY (1)

Montenero Energia S.r.l.
 B. H. Hale (Director and Chairman)                                  Williamsville, NY (1)
 R. J. Tanski (Director)                                             Williamsville, NY (1)
 K. D. Cotter (Director)                                             Williamsville, NY (1)
 A. Messina (Director)                                               Rome, Italy (28)
 S. Corso (Director)                                                 Rome, Italy (29)
 G. Mancini (Director)                                               Rome, Italy (30)

**** Officers and directors of Horizon LFG's subsidiaries as of September 30, 2004 were as follows:

Toro Partner LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

Toro Partners, LP
 Toro Partners, LP has no directors or officers; it is managed by its general partner.

Toro Energy of Michigan, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

Toro Energy of Ohio-Statewide, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

Toro Energy of Ohio, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

Toro Energy of Kentucky, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)



Toro Energy of Missouri, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

Toro Energy of Maryland, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

Toro Energy of Indiana, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

Toro Energy of Ohio-American, LLC
 B. H. Hale (Manager)                                                Williamsville, NY (1)
 R. J. Tanski (Manager)                                              Williamsville, NY (1)
 D. A. Wassum (President and Treasurer)                              Williamsville, NY (1)
 K. D. Cotter (Vice President and Secretary)                         Williamsville, NY (1)

***** Officers of Power's subsidiaries as of September 30, 2004 included the following persons (because Power's
subsidiaries are not wholly owned directly or indirectly by the Registrant or any system company, disclosure is
limited to those officers who are directly employed by the Registrant or its system companies):

Seneca Energy II, LLC
 B. H. Hale (Secretary and Chief Financial Officer)                  Williamsville, NY (1)

Model City Energy, LLC
 B. H. Hale (Chief Financial Officer)                                Williamsville, NY (1)

Energy Systems North East, LLC
 B. H. Hale (Senior Vice President)                                  Williamsville, NY (1)
 K. D. Cotter (Vice President)                                       Williamsville, NY (1)
 P. L. Malachowski (Treasurer)                                       Williamsville, NY (1)


Notes

 (1)  National Fuel Gas Company, 6363 Main Street, Williamsville, New York 14221
 (2)  9226 E. Champagne Drive, Sun Lakes, AZ 85248
 (3)  302 Fall River Court, Houston, TX 77024
 (4)  Moog Inc., Plant 24/Seneca at Jamison Rd., East Aurora, NY 14052-0018
 (5)  Seneca Resources Corporation, 1201 Louisiana Street, Suite 400, Houston, Texas 77002
 (6)  Seneca Resources Corporation, P.O. Box 630, Santa Paula, CA 93061-0630
 (7)  Horizon Energy Development, s.r.o., Maiselova 15, Praha 1 - Josefov, 11000, Czech Republic
 (8)  Intra Beheer B.V., Teleportboulevard 140, 1043 EJ, Amsterdam, The Netherlands
 (9)  Maid of the Mist Corporation, 151 Buffalo Avenue, Niagara Falls, New York 14303
(10)  Teplarna Liberec, a.s., Dr. Milady Horakove 641/34a, 460 01 Liberec 4, Czech Republic
(11)  Predicor, Tax advisor, Pristavni 2, 170 00 Prague 7, Czech Republic
(12)  National Fuel Resources, Inc., 165 Lawrence Bell Drive, Williamsville, NY 14221
(13)  Law Office Rasovsky, Krejci, Cinglos, Spitalka 23 b, 602 00 Brno, Czech Republic
(14)  United Energy, a.s., Teplarenska no. 2, 434 03 Most Komorany, Czech Republic
(15)  Teplo Branany, s.r.o., Bilinska 76 Branany, Czech Republic
(16)  National Fuel Gas Company, 1100 State Street, Erie, PA 16501
(17)  Gas Technology Institute, 1700 So. Mt. Prospect Road, Des Plaines, IL  60018-1804
(18)  National Fuel Gas Distribution Corporation, 365 Mineral Springs Road, Building 3, Buffalo, NY 14210
(19)  Seneca Energy Canada, Inc., 1000, 550 - 6 Avenue, S.W., Calgary, Alberta, Canada T2P 0S2
(20)  City of Liberec, nam. Dr. E. Benese 1, 460 59 Liberec 1, Czech Republic
(21)  Parliament of the Czech Republic, Snemovni 4, 118 26 Prague 1, Czech Republic
(22)  President of Usti Region, Velka Hradebni 3118/48, 400 02 Usti nad Labem, Czech Republic
(23)  City of Louny, Mirove namesti 35, 440 23 Louny, Czech Republic
(24)  The Robert H. Jackson Center, Inc., 305 East Fourth Street, P. O. Box 879, Jamestown, NY 14702
(25)  Suite 900, 1959 Upper Water Street, P.O. Box 997, Halifax, Nova Scotia B3J 2X2
(26)  Lounske tepelne hospodarstvi spol. s.r.o., 17 listopadu 2580, 440 01 Louny
(27)  P.O. Box 45433, Salt Lake City, UT 84145
(28)  Piazzale Ostiense No. 2, Rome, Italy
(29)  Piazzale Ostiense No. 2, Rome, Italy
(30)  Piazzale Ostiense No. 2, Rome, Italy

Item 6. OFFICERS AND DIRECTORS (Continued)
Part II.  Financial connections as of September 30, 2004:

                                                 Position Held     Applicable
Name of Officer        Name and Location of      in Financial      Exemption
  or Director          Financial Institution      Institution         Rule
- ---------------        ---------------------     -------------     ----------

R. T. Brady           Manufacturers and Traders
                       Trust Company,
                       Buffalo, New York           Director          70 (a)
                      M&T Bank Corporation,
                       Buffalo, New York           Director          70 (a)

R. D. Cash            Zions Bancorporation,        Director          70 (a)
                       Salt Lake City, Utah

G. L. Mazanec         Northern Trust Bank
                       of Texas,
                       Dallas, Texas               Director          70 (a)

Part III. Compensation and other related information:
(a) Compensation of Directors and Executive Officers:

         The information required by this item appears under "Directors' Compensation," and "Executive Compensation,"
on pages 7 and 8 and pages 13 to 20, respectively, of the National Fuel Gas Company Proxy Statement, dated January 6,
2005, included as Exhibit A (3) to this Form U5S and is incorporated herein by reference.

(b) Interest of executive officers and directors in securities of System
    Companies including options or other rights to acquire securities:

         The information required by this item appears under "Security Ownership of Certain Beneficial Owners and
Management," on pages 10 to 12 of the National Fuel Gas Company Proxy Statement, dated January 6, 2005, included as
Exhibit A(3) of this Form U5S and is incorporated herein by reference.

(c)  Contracts and Transactions with System Companies:

         The following contracts and transactions with the directors and executive officers of National Fuel Gas
Company were disclosed in the Company's Form 10-K for fiscal year 2004.


o        Retirement Benefit Agreement, dated September 22, 2003, between the Company and David F. Smith (Exhibit 10.2,
         Form 10-K for fiscal year ended September 30, 2003 in File No. 1-3880)

o        Form of Employment Continuation and Noncompetition Agreement, dated as of December 11, 1998, among the
         Company, National Fuel Gas Distribution Corporation and each of Philip C. Ackerman, Anna Marie Cellino,
         Joseph P. Pawlowski, James D. Ramsdell, Dennis J. Seeley, David F. Smith and Ronald J. Tanski (Exhibit
         10.1, Form 10-Q for the quarterly period ended June 30, 1999 in File No. 1-3880)

o        Form of Employment Continuation and Noncompetition Agreement, dated as of December 11, 1998, among the
         Company, National Fuel Gas Supply Corporation and each of Bruce H. Hale and John R. Pustulka (Exhibit
         10.2, Form 10-Q for the quarterly period ended June 30, 1999 in File No. 1-3880)

Item 6. OFFICERS AND DIRECTORS (Continued)
o        Form of Employment Continuation and Noncompetition Agreement, dated as of December 11, 1998, among the
         Company, Seneca Resources Corporation and James A. Beck (Exhibit 10.3, Form 10-Q for the quarterly period
         ended June 30, 1999 in File No. 1-3880)

o        National Fuel Gas Company 1993 Award and Option Plan, dated February 18, 1993 (Exhibit 10.1, Form 10-Q for
         the quarterly period ended March 31, 1993 in File No. 1-3880)

o        Amendment to National Fuel Gas Company 1993 Award and Option Plan, dated October 27, 1995 (Exhibit 10.8, Form
         10-K for fiscal year ended September 30, 1995 in File No. 1-3880)

o        Amendment to National Fuel Gas Company 1993 Award and Option Plan, dated December 11, 1996 (Exhibit 10.8,
         Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880)

o        Amendment to National Fuel Gas Company 1993 Award and Option Plan, dated December 18, 1996 (Exhibit 10, Form
         10-Q for the quarterly period ended December 31, 1996 in File No. 1-3880)

o        National Fuel Gas Company 1993 Award and Option Plan, amended through June 14, 2001 (Exhibit 10.1, Form 10-K
         for fiscal year ended September 30, 2001 in File No. 1-3880)

o        National Fuel Gas Company 1997 Award and Option Plan, amended through June 14, 2001 (Exhibit 10.2, Form 10-K
         for fiscal year ended September 30, 2001 in File No. 1-3880)

o        National Fuel Gas Company Deferred Compensation Plan, as amended and restated through May 1, 1994 (Exhibit
         10.7, Form 10-K for fiscal year ended September 30, 1994 in File No. 1-3880)

o        Amendment to the National Fuel Gas Company Deferred Compensation Plan, dated September 19, 1996 (Exhibit
         10.10, Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880)

o        Amendment to the National Fuel Gas Company Deferred Compensation Plan, dated September 27, 1995 (Exhibit
         10.9, Form 10-K for fiscal year ended September 30, 1995 in File No. 1-3880)

o        National Fuel Gas Company Deferred Compensation Plan, as amended and restated through March 20, 1997 (Exhibit
         10.3, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880)

o        Amendment to National Fuel Gas Company Deferred Compensation Plan dated June 16, 1997 (Exhibit 10.4, Form
         10-K for fiscal year ended September 30, 1997 in File No. 1-3880)

o        Amendment No. 2 to the National Fuel Gas Company Deferred Compensation Plan, dated March 13, 1998  (Exhibit
         10.1, Form 10-K for fiscal year ended September 30, 1998 in File No. 1-3880)

o        Amendment to the National Fuel Gas Company Deferred Compensation Plan, dated February 18, 1999 (Exhibit 10.1,
         Form 10-Q for the quarterly period ended March 31, 1999 in File No. 1-3880)

Item 6. OFFICERS AND DIRECTORS (Continued)
o        Amendment to National Fuel Gas Company Deferred Compensation Plan, dated June 15, 2001 (Exhibit 10.3, Form
         10-K for fiscal year ended September 30, 2001 in File No. 1-3880)

o        National Fuel Gas Company Tophat Plan, effective March 20, 1997 (Exhibit 10, Form 10-Q for the quarterly
         period ended June 30, 1997 in File No. 1-3880)

o        Amendment No. 1 to the National Fuel Gas Company Tophat Plan, dated April 6, 1998 (Exhibit 10.2, Form 10-K
         for fiscal year ended September 30, 1998 in File No. 1-3880)

o        Amendment No. 2 to the National Fuel Gas Company Tophat Plan, dated December 10, 1998 (Exhibit 10.1, Form
         10-Q for the quarterly period ended December 31, 1998 in File No. 1-3880)

o        Amended and Restated Split Dollar Insurance Agreement, effective June 15, 2000 among the Company, Bernard J.
         Kennedy, and Joseph B. Kennedy, as Trustee of the Trust under the Agreement dated January 9, 1998
         (Exhibit 10.1, Form 10-Q for the quarterly period ended June 30, 2000 in File No. 1-3880)

o        Contingent Benefit Agreement effective June 15, 2000 between the Company and Bernard J. Kennedy (Exhibit
         10.2, Form 10-Q for the quarterly period ended June 30, 2000 in File No. 1-3880)

o        Amended and Restated Split Dollar Insurance and Death Benefit Agreement dated September 17, 1997 between the
         Company and Philip C. Ackerman (Exhibit 10.5, Form 10-K for fiscal year ended September 30, 1997 in File
         No. 1-3880)

o        Amendment Number 1 to Amended and Restated Split Dollar Insurance and Death Benefit Agreement by and between
         the Company and Philip C. Ackerman, dated March 23, 1999 (Exhibit 10.3, Form 10-K for fiscal year ended
         September 30, 1999 in File No. 1-3880)

o        Amended and Restated Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the
         Company and Joseph P. Pawlowski (Exhibit 10.7, Form 10-K for fiscal year ended September 30, 1997 in File
         No. 1-3880)

o        Amendment Number 1 to Amended and Restated Split Dollar Insurance and Death Benefit Agreement by and between
         the Company and Joseph P. Pawlowski, dated March 23, 1999 (Exhibit 10.5, Form 10-K for fiscal year ended
         September 30, 1999 in File No. 1-3880)

o        Amended and Restated Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the
         Company and Dennis J. Seeley (Exhibit 10.9, Form 10-K for fiscal year ended September 30, 1999 in File
         No. 1-3880)

o        Amendment Number 1 to Amended and Restated Split Dollar Insurance and Death Benefit Agreement by and between
         the Company and Dennis J. Seeley, dated March 29, 1999 (Exhibit 10.10, Form 10-K for fiscal year ended
         September 30, 1999 in File No. 1-3880)

o        Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the Company and Bruce H.
         Hale (Exhibit 10.11, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880)



Item 6. OFFICERS AND DIRECTORS (Continued)
o        Amendment Number 1 to Split Dollar Insurance and Death Benefit Agreement by and between the Company and Bruce
         H. Hale, dated March 29, 1999 (Exhibit 10.12, Form 10-K for fiscal year ended September 30, 1999 in File
         No. 1-3880)

o        Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the Company and David F.
         Smith (Exhibit 10.13, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880)

o        Amendment Number 1 to Split Dollar Insurance and Death Benefit Agreement by and between the Company and David
         F. Smith, dated March 29, 1999 (Exhibit 10.14, Form 10-K for fiscal year ended September 30, 1999 in File
         No. 1-3880)

o        National Fuel Gas Company Parameters for Executive Life Insurance Plan (Exhibit 10.1, Form 10-K for fiscal
         year ended September 30, 2004, in file No. 1-3880)

o        National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan as amended and restated
         through November 1, 1995 (Exhibit 10.10, Form 10-K for fiscal year ended September 30, 1995 in File No.
         1-3880)

o        National Fuel Gas Company and Participating Subsidiaries 1996 Executive Retirement Plan Trust Agreement (II)
         dated May 10, 1996 (Exhibit 10.13, Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880)

o        Amendments to National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan dated
         September 18, 1997 (Exhibit 10.9, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880)

o        Amendments to the National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan dated
         December 10, 1998 (Exhibit 10.2, Form 10-Q for the quarterly period ended December 31, 1998 in File No.
         1-3880)

o        Amendments to National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan effective
         September 16, 1999 (Exhibit 10.15, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880)

o        Amendment to National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan, effective
         September 5, 2001 (Exhibit 10.4, Form 10-K/A for fiscal year ended September 30, 2001 in File No. 1-3880)

o        National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan 2003 Trust Agreement (I),
         dated September 1, 2003 (Exhibit 10.2, Form 10-K for fiscal year ended September 30, 2004, in File No.
         1-3880)

o        Retirement Supplement Agreement, dated January 11, 2002, between the Company and Joseph P. Pawlowski (Exhibit
         10.6, Form 10-K/A for fiscal year ended September 30, 2001 in File No. 1-3880)

o        Amendment No. 1 to Retirement Supplement Agreement dated March 11, 2004, between the Company and Joseph P.
         Pawlowski (Exhibit 10 (iii), Form 10Q for the quarterly period ended March 31, 2004 in File No. 1-3880)


Item 6. OFFICERS AND DIRECTORS (Continued)
o        Administrative Rules with Respect to at Risk Awards under the 1993 Award and Option Plan (Exhibit 10.14, Form
         10-K for fiscal year ended September 30, 1996 in File No. 1-3880)

o        Administrative Rules with Respect to at Risk Awards under the 1997 Award and Option Plan (Exhibit A,
         Definitive Proxy Statement, Schedule 14(A) filed January 10, 2002 in File No. 1-3880)

o        Administrative Rules of the Compensation Committee of the Board of Directors of National Fuel Gas Company, as
         amended and restated, effective September 9, 2004 (Exhibit 10.3, Form 10-K for fiscal year ended
         September 30, 2004 in File No. 1-3880)

o        Excerpts of Minutes from the National Fuel Gas Company Board of Directors Meeting of March 20, 1997 regarding
         the Retainer Policy for Non-Employee Directors (Exhibit 10.11, Form 10-K for fiscal year ended September
          30, 1997 in File No. 1-3880)

o        Retirement and Consulting Agreement, dated September 5, 2001, between the Company and Bernard J. Kennedy
         (Exhibit 10.4, Form 10-K for fiscal year ended September 30, 2004 in File No. 1-3880)


(d)    Indebtedness to System Companies:  None

(e)    Participation in Bonus and Profit-Sharing Arrangements and Other Benefits:

       The information required by this item appears under "Directors' Compensation" and "Executive Compensation" on
       pages 7 and 8 and pages 13 to 20, respectively, of the National Fuel Gas Company Proxy Statement, dated January
       6, 2005, included as Exhibit A(3) to this Form U5S and incorporated herein by reference.

(f)    Rights to Indemnity:

       The information required by this item appears in Article II, Paragraph 8 of the National Fuel Gas Company
       By-Laws as amended through December 9, 2004.  Such By-Laws are listed as Exhibit B(1)(ii) to this Form U5S.

       The Company also purchases directors and officers liability insurance coverage with an annual aggregate limit
       of $115 million, and, in recognition of the scope of the foregoing by-law indemnification, certain other errors
       and omissions and general liability insurance coverages which are applicable to all employees as insureds,
       including directors and officers.


ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS

                                                                                               Amount
                            Name of Recipient               Accounts Charged Per Books   Fiscal Year Ended
    Name of Company          or Beneficiary       Purpose     of Disbursing Company      September 30, 2004
    ---------------         -----------------     -------   --------------------------   ------------------

Tabulation showing expenditures, disbursements, or payments during the year, in money, goods or services,
directly or indirectly to or for the account of:

(1) Any political party, candidate for public office or holder of such office, or any committee or agent
    therefor:

Distribution Corporation           N/A            *FEDPAC    Misc. Income Deductions        $  2,237

Distribution Corporation           N/A            *NYPAC     Misc. Income Deductions        $  1,710

Distribution Corporation           N/A            *PAPAC     Misc. Income Deductions        $  1,477

Supply Corporation                 N/A            *FEDPAC    Misc. Income Deductions        $    955

Supply Corporation                 N/A            *NYPAC     Misc. Income Deductions        $  2,206

Supply Corporation                 N/A            *PAPAC     Misc. Income Deductions        $    901

* Company labor and expenses relating to administration of political action funds.

(2) Any citizens group or public relations counsel:

Distribution Corporation    29 Beneficiaries       Civic     Operation Expense              $ 17,953

Supply Corporation          14 Beneficiaries       Civic     Operation Expense              $  5,742

Seneca Resources             1 Beneficiary         Civic     Operation Expense              $    335

The information called for by instruction 2 to Item 7 was compiled, and memoranda from the applicable
System Companies were received and are preserved by the Registrant.

ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS

Part I.  Intercompany sales and services

    (1)  Salaries of officers of the Registrant


                                                    NATIONAL FUEL GAS COMPANY
                                                  REPORT OF OFFICERS' SALARIES
                                          FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004

                         Distribution   Supply   Seneca                       Data-  Horizon  Horizon
                   Parent     Corp.        Corp.  Resources  Highland  Horizon  Track   Power     LFG     NFR    Total
                   ------  ------------   ------  ---------  --------  -------  -----  -------  -------   ---    -----


P. C. Ackerman     97,500    257,400     210,600    120,900    23,400   19,500  3,900    3,900   3,900  39,000  780,000

K. M. Camiolo       3,250     35,334      18,941      3,614     3,770        -      -        -       -      91   65,000

A. M. Cellino      12,025    120,130     108,225          -       120        -      -        -       -       -  240,500

J. P. Pawlowski     7,075     76,169      41,261      8,165     8,674        -      -        -       -     156  141,500

R. J. Tanski       27,850    137,755      55,700     12,634    11,084   33,200      -        -       -     277  278,500


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)

(2)   Services rendered by Statutory Subsidiaries

                                                DISTRIBUTION CORPORATION
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                            Common Expenses
                            ---------------------------------------------------------------------------------

                                                      Corporate     Materials                Accounts
Receiving Company           Executive   Purchasing  Communications  Management  Accounting   Payable     Risk
- -----------------           ---------   ----------  --------------  ----------  ----------   --------    ----
Parent Company               $    -       $  -           $  -          $ -       $    -       $  -       $  -
Supply Corporation              322        200             97            8          969        227         43
Seneca Resources                318          -             31            -          187          -         55
Empire State Pipeline            72         45             22            -          169         52          6
Highland                         48          -              5            -           28          -         11
Data-Track                        -          -              -            -            -          -          -
NFR                               8          -              1            -            4          -         17
Leidy Hub                         -          -              -            -            -          -          -
Toro Partners LLC                 -          -              -            -            -          -          -
Toro Partners L.P.                -          -              -            -            -          -          -
Upstate Energy                    -          -              -            -            -          -          -
Horizon                           -          -              -            -            -          -          -
                             ------       ----           ----          ---       ------       ----       ----
                             $  768       $245           $156          $ 8       $1,357       $279       $132
                             ======       ====           ====          ===       ======       ====       ====

                                                            Common Expenses
                            -----------------------------------------------------------------------------------
                              Data           Human                             Government      Benefit
Receiving Company           Processing     Resources     Legal     Finance       Affair        Services     CPR
- -----------------           ----------     ---------     -----     -------     ----------      --------     ---
Parent Company                 $  -          $  -        $  -       $  -          $ -            $  -      $  -
Supply Corporation               69           563         128        540           37             152       115
Seneca Resources                  -            72         128         76            -             154         -
Empire State Pipeline            19            96          29         86            8              35        26
Highland                          -            11          19         11            -              23         -
Data-Track                        -             -           -          -            -               -         -
NFR                               -             2           3          2            -               4         -
Leidy Hub                         -             -           -          -            -               -         -
Toro Partners LLC                 -             -           -          -            -               -         -
Toro Partners L.P.                -             -           -          -            -               -         -
Upstate Energy                    -             -           -          -            -               -         -
Horizon                           -             -           -          -            -               -         -
                               ----          ----        ----       ----          ---            ----      ----
                               $ 88          $744        $307       $715          $45            $368      $141
                               ====          ====        ====       ====          ===            ====      ====

                               Common Expenses
                            -------------------
                                        Total           Total      Total    Convenience or      Total Service
                                        Common         Clearing    Direct    Accommodation       Rendered By
Receiving Company           Payroll     Expense        Charges*   Charges*    Payments*     Statutory Subsidiaries
- -----------------           -------     -------        --------   --------  --------------  ----------------------
Parent Company               $  -       $    -          $   71     $  543      $   505             $ 1,119
Supply Corporation            131        3,601           4,672      7,212       11,625              27,110
Seneca Resources                -        1,021             225        584        3,245               5,074
Empire State Pipeline           -          665             192        315          510               1,682
Highland                        -          156              35         45          545                 781
Data-Track                      -            -               1          9            2                  12
NFR                             -           41              29        184          275                 530
Leidy Hub                       -            -               -          5            1                   6
Toro Partners LLC               -            -               -          -            1                   1
Toro Partners L.P.              -            -               5         73           40                 119
Upstate Energy                  -            -               1         16            5                  22
Horizon Energy                  -            -              23        409          346                 778
Horizon Power                   -            -               8        140           78                 226
                             ----       ------          ------     ------      -------             -------
                             $131       $5,484          $5,263     $9,535      $17,178             $37,460
                             ====       ======          ======     ======      =======             =======



* Analysis of Clearing Charges, Direct Charges & Convenience or Accommodation Payments is presented on the following
pages.


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)

(2)   Services rendered by Statutory Subsidiaries

                                                DISTRIBUTION CORPORATION
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                            Clearing Charges
                            ----------------------------------------------------------------------------------------
                                      Material                                                           Total
                            Officer   Issue &                                       Data    Messenger   Clearing
Receiving Company           Clearing  Transfer Telecommunications Rental Postage Processing  Expense     Charges
- -----------------           --------  -------- ------------------ ------ ------- ----------  -------     -------
Parent Company                $ 66     $    -         $  -         $  3   $ -      $    2     $  -       $   71
Supply Corporation             350      1,648          248          398     3      $1,929       96        4,672
Seneca Resources                72          -            -           58     -          95        -          225
Empire State Pipeline           33         15            -           41     -         103        -          192
Highland                        13          -            -            8     -          13        -           35
Data-Track                       1          -            -            -     -           -        -            1
NFR                             24          -            -            2     -           2        1           29
Leidy Hub                        -          -            -            -     -           -        -            -
Toro Partners LLLC               -          -            -            -     -           -        -            -
Toro Partners L.P.               -          -            -            -     -           5        -            5
Upstate Energy                   1          -            -            -     -           -        -            1
Horizon Energy                  17          -            -            2     -           4        -           23
Horizon Power                    1          -            -            5     -           2        -            8
                              ----     ------         ----         ----   ---      ------     ----       ------
                              $580     $1,663         $248         $517   $ 3      $2,155     $ 97       $5,263
                              ====     ======         ====         ====   ===      ======     ====       ======

                                                            Direct Charges
                            -----------------------------------------------------------------------------------
                                         Telecom-   Environment/              Contract
Receiving Company           Land   MMD  munications  Insurance  Operations  Administration     Accounting
- -----------------           ----   ---  ----------- ----------- ----------  --------------     ----------
Parent Company              $  -  $  -     $ -         $ 14       $    -         $ -              $  -
Supply Corporation           442   422      35           60        2,987          55                 4
Seneca Resources              46     -       -           18           19           -                 -
Empire State Pipeline          -     -       -            1           98           -                 -
Highland                       -     -       -            4            -           -                 -
Data-Track                     -     -       -            -            -           -                 -
NFR                            -     -       -            1            -           -                 -
Leidy Hub                      -     -       -            -            -           -                 -
Toro Partners LLC              -     -       -            -            -           -                 -
Toro Partners L.P.             -     -       -            1            -           -                16
Upstate Energy                 -     -       -            -            -           -                 -
Horizon Energy                 -     -       -            4            -           -                39
Horizon Power                  -     -       -           17            -           -                51
                            ----  ----     ---         ----       ------         ---              ----
                            $489  $422     $35         $121       $3,104         $55              $111
                            ====  ====     ===         ====       ======         ===              ====

                                                            Direct Charges
                            ----------------------------------------------------------------------------------
                                    Government   Budget &                           Human
Receiving Company           Legal    Affairs     Finance   Executive  Insurance   Resources
- -----------------           -----   ----------   -------   ---------  ---------   ---------
Parent Company               $ -      $  -       $  157     $  336       $  -        $14
Supply Corporation            31       281          454      1,476        426         36
Seneca Resources               -         -          127        355          -         14
Empire State Pipeline          -         7           45        138          -          -
Highland                       -         -            2         39          -          -
Data-Track                     -         -            -          9          -          -
NFR                            1         -           36        101          -         12
Leidy Hub                      -         -            -          5          -          -
Toro Partners LLC              -         -            -          -          -          -
Toro Partners L.P.             -         -           57          -          -          -
Upstate Energy                 -         -            -         15          -          -
Horizon Energy                 -         -          181        119          -          -
Horizon Power                  -         -           59         13          -          -
                             ---      ----       ------     ------       ----        ---
                             $32      $288       $1,117     $2,606       $426        $75
                             ===      ====       ======     ======       ====        ===


                                                            Direct Charges
                            -----------------------------------------------------------------------------------
                                                                                                          Total
                            Benefit                 Quality     Corp.                                     Direct
Receiving Company           Services  Engineering  Assurance    Comm   Security                          Charges
- -----------------           --------  -----------  ---------    ----   --------                          -------
Parent Company               $ 22        $  -         $ -       $ -      $  -                            $  543
Supply Corporation              -         322          54         -       125                             7,212
Seneca Resources                4           -           -         -         -                               584
Empire State Pipeline           -           -           -        14        13                               315
Highland                        -           -           -         -         -                                45
Data-Track                      -           -           -         -         -                                 9
NFR                            33           -           -         -         -                               184
Leidy Hub                       -           -           -         -         -                                 5
Toro Partners LLC               -           -           -         -         -                                 -
Toro Partners L.P.              -           -           -         -         -                                73
Upstate Energy                  -           -           -         -         -                                16
Horizon Energy                 66           -           -         -         -                               409
Horizon Power                   -           -           -         -         -                               140
                             ----        ----         ---      ----      ----                            ------
                             $126        $322         $54      $ 14      $138                            $9,535
                             ====        ====         ===      ====      ====                            ======


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

        (2)     Services rendered by Statutory Subsidiaries (Continued)

                                                DISTRIBUTION CORPORATION
                                   ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                Receiving Company
                     -----------------------------------------------------------------------
                                                   Empire                             Toro
                     Parent    Supply     Seneca    State   Data-              Leidy Partner
                     Company Corporation Resources Pipeline Track Highland NFR  Hub    LLC
                     ------- ----------- --------- -------- ----- -------- --- ----- -------

Material               $  -     $   725   $    -    $ 1     $ -    $  -   $  -  $  -   $  -
Rents                     -           -        -      -       -       -      -     -      -
Transportation & Tools    -          36        -      1       -       -      -     -      -
Utilities                16       2,174       77     22       -       -     13     -      -
Contractors &
 Outside Services       154         937       73     23       -       5      3     -      -
Equipment Purchases
 & Rentals                -         251        -      2       -       -      -     -      -
Employee Benefits        13       2,959      479      5       -     317    129     -      -
Office Expense           36         525       35     28       -       4      5     -      1
R & D                     1         500        -      -       -      43      -     -      -
Dues & Subscriptions      1         506        -      -       -       -      -     -      -
Other Insurance           -       1,405    2,470    385       1      95     25     -      -
Injuries & Damages       11         171        -      -       -      72      -     -      -
Advertising               -           6        -      -       -       -      -     -      -
Postage                   -          13        -      -       -       -      -     -      -
Other                   210         334        1     12       1       -     57     -      -
General Accounting Adj.  63       1,057      110     31       -       9     43     1      -
Property Acquisition      -           7        -      -       -       -      -     -      -
Environment               -          20        -      -       -       -      -     -      -
                       ----     -------   ------   ----     ---    ----   ----  ----   ----
                       $505     $11,625   $3,245   $510     $ 2    $545   $275  $  1   $  1
                       ====     =======   ======   ====     ===    ====   ====  ====   ====



                                 Receiving Company
                      -------------------------------------------------
                         Toro        Upstate  Horizon   Horizon
                      Partner L.P.   Energy   Energy     Power    Total
                      ------------   -------  -------   -------   -----

Material               $   -         $   -     $  -     $  -    $   727
Rents                      -             -        -        -          -
Transportation & Tools     -             -        -        -         37
Utilities                  -             -        -        -      2,302
Contractors &
 Outside Services          6             1       42        -      1,244
Equipment Purchases
 & Rentals                 -             -        2        -        255
Employee Benefits          -             -       29        -      3,931
Office Expense             7             1       10        1        652
R & D                      -             -        -        -        544
Dues & Subscriptions       -             -        -        -        506
Other Insurance           24             -      131       71      4,607
Injuries & Damages         -             -        -        -        254
Advertising                -             -        -        -          6
Postage                    -             -        -        -         13
Other                      -             3        5       (7)       616
General Accounting Adj.    3             -      126       13      1,456
Property Acquisition       -             -        -        -          7
Environmental              -             -        -        -         20
                        ----          ----     ----     ----    -------
                        $ 40          $  5     $346     $ 78    $17,178
                        ====          ====     ====     ====    =======



ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

        (2)     Services rendered by Statutory Subsidiaries (Continued)

                                                    SUPPLY CORPORATION
                                        REPORT OF INTERCOMPANY SALES AND SERVICES
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)



                                               Clearing Accounts
                   -------------------------------------------------------------------------------
                                                  Material                                 Total
                   Executive Production Employee  Issue &  Rental Transport.    Gas       Clearing
Receiving Company  Clearing   Clearing  Benefits  Transfer Clear  Clearing   Measurement   Charges
- -----------------  --------- ---------- --------  -------- -----  --------   -----------   -------

Parent Company       $ 27      $  -       $  -     $   3     $  2    $  -       $ -        $   32
Distribution Corp.     32         -          -       388      360       -         -           780
Seneca Resources        -       480          -         7        -       -         -           487
Horizon Energy          2         -          -         -        1       -         -             2
Horizon LFG             -         -          -         -        -       -         -             -
Empire State Pipeline  10         -          -         -        1     262        13           287
NFR                     -         -          -         -        -       -         -             -
Highland                -         -          -         -        -       -         -             -
Data Track                        -          -         -        -       -         -             -
NFR Power               1         -          -         -        -       -         -             1
Toro Partners, LP       -         -          -         -        -       -         -             -
                     ----      ----       ----      ----     ----    ----       ---        ------
                     $ 72      $480       $  -      $398     $365    $262       $13        $1,590
                     ====      ====       ====      ====     ====    ====       ===        ======



                                              Direct Charges
                   -------------------------------------------------------------------------
                                                                              Operations,
                                         Benefit     Human            Gas    Construction &
Receiving Company  Executive Engineering Services  Resources  Land  Control Customer Service
- -----------------  --------- ----------- --------  ---------  ----  ------- ----------------

Parent Company       $101       $  -       $ 47       $  -    $  -  $    -      $    -
Distribution Corp.    216         24          -         80     211   1,338       2,457
Seneca Resources        -          9          7          -      63       -          68
Horizon Energy         25          -          8          -       -       -           -
Horizon LFG             -          -          -          -       -       -           -
Empire State Pipeline  88         93          -          -       3     168         357
NFR                     -          -          3          -       -       -           -
Highland                -          -          2         16       -       -           -
Data Track              -          -          3          -       -       -           -
NFR Power               -          -          -          -       -       -           -
Toro Partners, LP       -          -          -          -       -       -           -
                     ----       ----       ----       ----    ----  ------      ------
                     $429       $126       $ 69       $ 96    $277  $1,505      $2,882
                     ====       ====       ====       ====    ====  ======      ======



ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

        (2)     Services rendered by Statutory Subsidiaries (Continued)

                                                    SUPPLY CORPORATION
                                        REPORT OF INTERCOMPANY SALES AND SERVICES
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)



                                  Direct Charges Continued
                       ---------------------------------------------------
                                          Gas         Gas       Interstate
Receiving Company      Legal      MMD   Storage    Measurement   Marketing
- ----------------       -----      ---   -------    -----------  ----------

Parent Company          $  -     $  -     $  -        $  -         $  -
Distribution Corp.        68       80        1           -            -
Seneca Resources           -        -        -           -            -
Horizon Energy            29        -        3           -            -
Horizon LFG                9        -        -           -            -
Empire State Pipeline     54        -        -           -          106
NFR                        -        -        -           -            -
Highland                   -        -        -           -            -
Data Track                 -        -        -           -            -
NFR Power                  -        -        -           -            -
Toro Partners, LP         18        -        -           -            -
                        ----     ----      ---         ---         ----
                        $177     $ 80      $ 4         $ -         $106
                        ====     ====      ===         ===         ====





                                                              Total Services
                        Total     Total     Convenience or     Rendered By
                       Direct    Clearing   Accommodation       Statutory
Receiving Company      Charges   Charges      Payments*        Subsidiaries
- -----------------      -------   --------   --------------    -------------
Parent Company          $  148    $   32       $25,130           $25,310
Distribution Corp.       4,474       780         2,526             7,780
Seneca Resources           147       487            (1)              633
Horizon Energy              65         2            16                83
Horizon LFG                  9         -             -                 9
Empire State Pipeline      868       287           109             1,264
NFR                          3         -             -                 3
Highland                    18         -             -                18
Data Track                   3         -             -                 3
NFR Power                    -         1             -                 1
Toro Partners, LP           18         -             -                18
                        ------    ------       -------           -------
                        $5,752    $1,590       $27,781           $35,123
                        ======    ======       =======           =======



* Analysis of Convenience or Accommodation Payments is presented on separate page.


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

        (2)     Services rendered by Statutory Subsidiaries (Continued)

                                                   SUPPLY CORPORATION
                                   ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                             Receiving Company
                       ---------------------------------------------------------
                       Parent   Distribution   Seneca    Horizon  Horizon
                       Company  Corporation   Resources  Energy     LFG      NFR
                       -------  ------------  ---------  -------  --------   ---

Material               $    13     $  129       $(0)      $ -      $  -     $  -
Transportation               -          6         -         -         -        -
Utilities                    -        146         -         -         -        -
Contractors &
 Outside Services           47      1,210        (2)        4         -        -
Equipment Purchases
 & Rentals                   -         17         -         -         -        -
Employee Benefits       23,000          6         -         1         -        -
Office Expense             176         81         -        12         -        -
Research & Development       -        500         -         -         -        -
Dues & Memberships           -        371         -         -         -        -
Other                      147         54         -         -         -        -
Other Insurance              -          9         -         -         -        -
Postage                      -          -         -         -         -        -
Advertising                  -          5         -         -         -        -
Environmental                -          3         -         -         -        -
General Accounting
 Adjustment              1,747        (11)        -         -         -        -
                       -------     ------       ---       ---      ----      ---
                       $25,130     $2,526       $(1)      $16      $  -      $ -
                       =======     ======       ===       ===      ====      ===


                                   Receiving Company
                     ----------------------------------------------
                               Data    NFR     Toro    Empire State
                     Highland  Track  Power  Partners    Pipeline      Total
                     --------  -----  -----  --------  ------------    -----

Material                $ -     $ -    $ -     $ -        $ 13       $   155
Transportation            -       -      -       -           1             7
Utilities                 -       -      -       -           8           155
Contractors &
 Outside Services         -       -      -       -          75         1,334
Equipment Purchases
 & Rentals                -       -      -       -           -            17
Employee Benefits         -       -      -       -           -        23,007
Office Expense            -       -      -       -           6           274
Research & Development    -       -      -       -           -           500
Dues & Memberships        -       -      -       -           -           371
Other                     -       -      -       -           -           201
Other Insurance           -       -      -       -           -             9
Postage                   -       -      -       -           -             0
Advertising               -       -      -       -           -             5
Environmental             -       -      -       -           1             4
General Accounting
 Adjustment               -       -      -       -           5         1,740
                         ---     ---    ---     ---       ----       -------
                         $-      $-     $-      $-        $109       $27,781
                         ===     ===    ===     ===       ====       =======


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

  (2)  Services rendered by Statutory Subsidiaries (Continued)


                                                    SENECA RESOURCES
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                                            Total
                                                                           Services
                                                                         Rendered By
                                   Timber    Operations   Convenience     Statutory
Receiving Company                  Sales       Expense      Payments     Subsidiaries
- -----------------                  -------   ----------   ------------   ------------

Supply Corporation                $     -      $  670         $ 26         $   696
Highland                            7,711           -          323           7,711
SECI                                    -           -            -             323
                                  -------      ------         ----         -------
                                  $ 7,711      $  670         $349         $ 8,730
                                  =======      ======         ====         =======



                         ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
                         -------------------------------------------------
                                    Receiving Company
            ---------------------------------------------------------------------------------
               Supply
            Corporation      SECI      Total
            -----------      ----      -----

Other           $26          $323       $349
                ---          ----       ----
                $26          $323       $349
                ===          ====       ====



                                                     HORIZON LFG
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                       Total
                                                     Services
                                                   Rendered By
                       Convenience                   Statutory
Receiving Company        Payments      Clearing    Subsidiaries
- -----------------      -----------     --------    ------------

Distribution Corp.         $  2          $ -           $  2
Supply Corp.                  -            -              -
                           ----          ---           ----
                           $  2          $ -           $  2
                           ====          ===           ====



ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

  (2)  Services rendered by Statutory Subsidiaries (Continued)


                                                 EMPIRE STATE PIPELINE
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)


                                                        Total
                                                      Services
                                                     Rendered By
                            Convenience   Clearing    Statutory
Receiving Company             Payments    Charges    Subsidiaries
- -----------------           -----------   --------   ------------

Empire LLC                     $ 18         $  -         $ 18
Distribution Corporation        161            -          161
Supply Corporation              105           19          125
Highland Resources               23            -           23
Horizon Energy                  (37)           -          (37)
NFR                               4            -            4
                               ----         ----         ----
                               $275         $ 19         $294
                               ====         ====         ====


                       ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
                       -------------------------------------------------

                                 Receiving Company
                     --------------------------------------------------------
                     Empire                             Horizon
                       LLC    Dist    Supply  Highland   Energy   NFR   Total
                     ------   ----    ------  --------  -------   ---   -----

Inventory             $ -     $  -     $ -     $ -       $  -     $ -    $  -
Material                -        -      12       -          -       -      12
Transportation          -        -       -       -          -       -       -
Utilities               -        -       -       -          -       -       -
Employee Benefits       1        -       -       -          -       -       1
O/E Fringe              -        -       -       -          -       -       -
Outside Services        -       29      92       -          -       -     120
Office Employee
 Expense                -        1       1       -          -       -       2
Other Expense          17       20       -      23          -       4      64
C/E Other               -        -       -       -          -       -       -
O/E Other               -        -       -       -          -       -       -
Other Insurance         -      112       -       -        (37)      -      75
Revenue - Gas
  Transportation        -        -       -       -          -       -       -
                     ----     ----    ----     ---       ----     ---    ----
                     $ 18     $161    $105     $23       $(37)    $ 4    $275
                     ====     ====    ====     ===       ====     ===    ====



                        Analysis of Clearing Charges
                        ----------------------------

                            Receiving Company
               -------------------------------------------------------
               Empire                          Horizon
                 LLC   Dist.  Supply  Highland  Energy   NFR     Total
               ------  -----  ------  -------- -------   ---     -----

Inventory       $ -    $ -    $19      $ -      $ -     $ -      $ 19
                ---    ---    ---      ---      ---     ---      ----
                $ -    $ -    $19      $ -      $ -     $ -      $ 19
                ===    ===    ===      ===      ===     ===      ====


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

  (2)  Services rendered by Statutory Subsidiaries (Continued)



                                                   TORO PARTNERS, LP
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)



                                                       Total
                                                     Services
                                                    Rendered By
                         Convenience                 Statutory
Receiving Company          Payments    Operation    Subsidiaries
- -----------------        -----------   ---------    ------------

Distribution Corp.          $  9          $ -           $  9
Horizon Energy                 6            -              6
Toro Partners LLC             10            -             10
                            ----          ---           ----
                            $ 25          $ -           $ 25
                            ====          ===           ====





             Analysis of Convenience or Accommodation Payments

                      Receiving Company
                -------------------------------
                                      Toro
                Dist.   Horizon    Partners LLC          Total
                -----   -------    ------------          -----

Material           $ -       $ -          $ -            $  -
Outside Services     -         6            9              16
Office Employee
 Expense             -         -            -               -
Other Expense        9         -            -               9
                   ---       ---          ---            ----
                   $ 9       $ 6          $10            $ 25
                   ===       ===          ===            ====


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I.  Intercompany sales and services (Continued)

  (2)  Services rendered by Statutory Subsidiaries (Continued)


                                                        HIGHLAND
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                        Total Services
                                                          Rendered By
                       Convenience                        Statutory
Receiving Company       Payments         Operation        Subsidiaries
- -----------------      -----------       ---------      --------------

Seneca Resources          $210             $ 67              $276
                          ----             ----              ----
                          $210             $ 67              $276
                          ====             ====              ====


                                                       DATA-TRACK
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                        Total Services
                                                         Rendered by
                                         Collection       Statutory
Receiving Company                         Services       Subsidiaries
- -----------------                        ----------      ------------

Distribution Corporation                    $211             $211

NFR                                            6                6
                                            ----             ----
                                            $217             $217
                                            ====             ====


                                                   TORO PARTNERS, LLC
                                       REPORT OF INTERCOMPANY SALES AND SERVICES
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                         Total Services
                                                          Rendered by
                            Convenience                    Statutory
Receiving Company            Payments      Operation      Subsidiaries
- -----------------           -----------    ---------     -------------

Distribution Corporation       $  1          $  -             $  1
                               ----          ----             ----
                               $  1          $  -             $  1
                               ====          ====             ====



ITEM 8.  SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)

Part I.  Intercompany sales and services (Continued)

(2)      Services rendered by Statutory Subsidiaries (Continued)


                                          HORIZON
                         REPORT OF INTERCOMPANY SALES AND SERVICES
                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                  (THOUSANDS OF DOLLARS)


                                                       Total
                                                     Services
                                                    Rendered By
                         Convenience    Direct       Statutory
Receiving Company          Payments     Charges     Subsidiaries
- -----------------        -----------    -------     ------------

Horizon Power               $  2         $134           $137
Parent                        57            -             57
Seneca Resources               -            -              -
Highland                       6            -              6
Horizon LFG                   13          150            162
SECI                           1            -              1
                            ----         ----           ----
                            $ 78         $284           $362
                            ====         ====           ====



                     ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
                     -------------------------------------------------

                                 Receiving Company
                     ---------------------------------------------------------
                     Horizon          Seneca             Horizon
                      Power   Parent Resources Highland    LFG    SECI   Total
                     -------  ------ --------- --------  -------- ----   -----

Material              $ -     $  -     $ -       $ -     $  -     $ -    $  -
Office Employee
 Expense                2        3       -         1        1       -       7
Outside Services        -        -       -         5        -       1       6
Employee Benefits       -       54       -         -        -       -      54
General Accounting
 Adjustment             -        -       -         -       12       -      12
                     ----     ----    ----       ---     ----     ---    ----
                     $  2     $ 57    $  -       $ 6     $ 13     $ 1    $ 78
                     ====     ====    ====       ===     ====     ===    ====




                              Analysis of Direct Charges
                              --------------------------

                                 Receiving Company
                     Horizon          Seneca             Horizon
                      Power   Parent Resources Highland    LFG    SECI   Total
                     -------  ------ --------- --------  -------  ----   -----


Executive              $134     $ -     $ -      $ -      $150    $ -    $284
                       ----     ---     ---      ---      ----    ---    ----
                       $134     $ -     $ -      $ -      $150    $ -    $284
                       ====     ===     ===      ===      ====    ===    ====



ITEM 8.  SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)

Part I.  Intercompany sales and services (Continued)

   (2)  Services rendered by Statutory Subsidiaries (Continued)


                                    HORIZON POWER INC.
                         REPORT OF INTERCOMPANY SALES AND SERVICES
                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                  (THOUSANDS OF DOLLARS)


                                                       Total
                                                     Services
                                                    Rendered By
                         Convenience    Direct       Statutory
Receiving Company          Payments     Charges     Subsidiaries
- -----------------        -----------    -------     ------------

Toro Partners, LLC          $ 74          $ -           $ 74
                            ----          ---           ----
                            $ 74          $ -           $ 74
                            ====          ===           ====




                       ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
                       -------------------------------------------------

                                   Receiving Company
                     -------------------------------------------------------
                         Toro
                     Partners LLC   Dist.  Supply   Highland     NFR   Total
                     ------------   -----  ------   --------     ---   -----

Material                $ -         $ -     $ -     $  -        $ -    $  -
Transportation            -           -       -        -          -       -
Outside Services         74           -       -        -          -      74
Employee Benefits         -           -       -        -          -       -
                       ----        ----     ---     ----       ----    ----
                       $ 74        $  -     $ -     $  -       $ -     $ 74
                       ====        ====     ===     ====       ====    ====




                             EMPIRE STATE PIPELINE COMPANY LLC
                         REPORT OF INTERCOMPANY SALES AND SERVICES
                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                  (THOUSANDS OF DOLLARS)


                                                       Total
                                                     Services
                                                    Rendered By
                         Convenience    Direct       Statutory
Receiving Company          Payments     Charges     Subsidiaries
- -----------------        -----------    -------     ------------

Empire State Pipeline       $  -          $210          $210
Distribution Corp.             -             1             1
Supply Corp.                   -             -             -
Highland                       -             -             -
Horizon Energy                 -             -             -
NFR                            -             -             -
                            ----          ----          ----
                            $  -          $211          $211
                            ====          ====          ====





ITEM 8.  SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)

Part I.  Intercompany sales and services (Continued)

   (2)  Services rendered by Statutory Subsidiaries (Continued)





                            Analysis of Direct Charges
                            --------------------------

                                 Receiving Company
                     ------------------------------------------------------
                     Empire State
                       Pipeline     Dist.  Supply   Highland   NFR    Total
                     ------------   -----  ------   --------   ---    -----


Executive                $210       $ 1     $ -       $ -     $ -      $211
                         ----       ---     ---       ---     ---      ----
                         $210       $ 1     $ -       $ -     $ -      $211
                         ====       ===     ===       ===     ===      ====





                                 NATIONAL FUEL GAS COMPANY
                         REPORT OF INTERCOMPANY SALES AND SERVICES
                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                  (THOUSANDS OF DOLLARS)


                                                       Total
                                                     Services
                                                    Rendered By
                         Convenience   Clearing      Statutory
Receiving Company          Payments     Charges     Subsidiaries
- -----------------        -----------   --------     ------------

Distribution                $  -         $2,263        $2,263
Supply                         -            222           222
Empire                         -              6             6
Horizon                        -             21            21
NFR                            -              -             -
Seneca Resources               -              -             -
Highland                       -              -             -
Horizon LFG                    -              -             -
SIP                            -              -             -
Leidy Hub                      -              -             -
Data Track                     -              -             -
                            ----         ------        ------
                            $  -         $2,513        $2,513
                            ====         ======        ======






ITEM 8.  SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)

Part I.  Intercompany sales and services (Concluded)

   (2)  Services rendered by Statutory Subsidiaries (Concluded)




                               Analysis of Clearing Charges
                               ----------------------------

                                    Receiving Company
                     -----------------------------------------------------------
                                                                        Seneca
                     Distribution  Supply   Empire    Horizon    NFR   Resources
                     ------------  ------   ------    -------    ---   ---------


Rent*                    $2,263     $222     $ 6        $21      $ -      $ -
                         ------     ----     ---        ---      ---      ---
                         $2,263     $222     $ 6        $21      $ -      $ -
                         ======     ====     ===        ===      ===      ===




                                Analysis of Clearing Charges
                                ----------------------------

                                    Receiving Company
                     ------------------------------------------------------
                                                     Leidy   Data
                     Highland   Horizon LFG   SIP     Hub    Track    Total
                     --------   -----------   ---    -----   -----    -----


Rent*                  $ -          $ -      $ -     $ -      $ -     $2,513
                       ---          ---      ---     ---      ---     ------

                       $ -          $ -      $ -     $ -      $ -     $2,513
                       ===          ===      ===     ===      ===     ======





         *  NFGC allocates rent charges for its headquarters building among the
            occupants of the building, based on square footage occupied.






        (3)     Services rendered by Registrant

                No services were rendered for a charge by the Registrant to any of its subsidiaries during the
                fiscal year ended September 30, 2004.


ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Concluded)
Part II.         Contracts to purchase services or goods between any System company and any affiliate (other than a
                 System company and other than as reported in Item 6) at September 30, 2004:

                 None

Part III.        Employment of any person by any System company for the performance on a continuing basis of
                 management services:

                                Description of Contract and         Annual
                Name                 Scope of Services           Consideration
           ----------------     ---------------------------      -------------

           Robert Davis         Performs management and           $  578,941
                                consulting services for
                                Highland.

           Evans Operating      Performs production management    $3,427,372
           Company, LLP         services for Seneca Resources
                                with respect to Gulf of Mexico
                                properties.

ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
Part I.  A.       Interests in Foreign Utility Companies

                           1.       United Energy, a.s. and Teplarna Liberec, a.s.

                           (a)      United Energy, a.s. (UE)
                                    Komorany u Mostu
                                    434 03 Most
                                    Czech Republic

                                    Teplarna Liberec, a.s. (TL)
                                    Dr. M. Horakove 641/34a
                                    460 01 Liberec
                                    Czech Republic

                                    UE generates and supplies steam heat to customers in the Czech Republic.  UE also
                                    generates electric energy for sale.  UE has been designated as a foreign utility
                                    company because it owns and operates a coal-fired electric generation plant with
                                    generating capacity of 236 MW and sells the electricity it produces at wholesale.
                                    UE has also been designated as a foreign utility company
                                    because it owns a 70% interest (common equity) in TL.  TL, in turn, has been
                                    designated as a foreign utility company because it owns and operates a 12 MW steam
                                    powered electric generation turbine and sells the produced electricity at wholesale.

                                    Horizon Energy Development, Inc. (Horizon) owns 100% of the capital stock of
                                    Horizon Energy Holdings, Inc. (HEHI), which owns 100% of the capital stock of
                                    Horizon Energy Development B.V. (HEDBV).  HEDBV owns 85.16% of the capital stock of
                                    UE, which owns 70% of the capital stock of TL.



ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Continued)
                            (b)     Horizon owns 100% of the capital stock of HEHI, which investment was valued at
                                    $184,582,000 as of September 30, 2004.  HEHI owns 100% of the capital stock of
                                    HEDBV, which investment was valued at $185,042,000 as of September 30, 2004.  HEDBV
                                    owns 85.16% of the capital stock of UE, and such investment was valued at
                                    $183,614,000 as of September 30, 2004.  UE owns 70% of the capital stock of TL, and
                                    such investment was valued at $11,805,000 as of September 30, 2004.  The financial
                                    statements of Horizon and its subsidiaries are found on pages 89 through 113 of
                                    this Form U5S.

                                    There are no debts or other financial obligations of HEHI, HEDBV, UE or TL for
                                    which there is recourse, directly or indirectly, to the registered holding company
                                    or another system company.  There are no direct or indirect guaranties of any of
                                    the securities of UE or TL by the registered holding company.  There have been no
                                    transfers of any assets from any system company to UE or TL.

                           (c)      The ratio of debt to comprehensive shareholders' equity of UE was 5.37% as of
                                    September 30, 2004.  TL had no debt outstanding at September 30, 2004.  UE recorded
                                    income of $12,673,000 for the twelve months ended September 30, 2004 (net of
                                    minority interest) and TL incurred a loss of $641,000 for the twelve months ended
                                    September 30, 2004 (net of minority interest).  The financial statements of UE and
                                    TL are found on pages 89 through 113 of this Form U5S.

                           (d)      There are management support agreements between Horizon Energy Development, s.r.o.
                                    (HED) and UE and TL.  Under these agreements, HED agrees to provide management
                                    services (i.e., strategic, legal, marketing, public relations and human resource
                                    services) to both UE and TL.  The agreement with UE calls for UE to pay HED
                                    CZK 1,975,000 on a monthly basis.  The agreement with TL calls for a monthly
                                    payment of CZK 500,000 to HED.

                                    There is a service agreement between UE and TL calling for TL to pay UE CZK
                                    1,630,000 on a monthly basis.  The services UE provides include services similar to
                                    those described above, plus engineering, technical, accounting and bank
                                    transactional services.


ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Concluded)
          B.       Interests in Exempt Wholesale Generators

                           1.       Horizon Power, Inc.

                           (a)      Horizon Power, Inc. (Power)
                                    6363 Main Street
                                    Williamsville, New York  14221

                                    Power has been designated as an exempt wholesale generator by the Federal Energy
                                    Regulatory Commission and owns a 50% interest in each of Seneca Energy II, LLC
                                    (Seneca Energy), Model City Energy, LLC (Model City) and Energy Systems North East,
                                    LLC (ESNE).  Seneca Energy has a generating capacity of approximately 11.2 MW at a
                                    site near Seneca Falls, New York, where it generates electricity using methane gas
                                    obtained from a landfill.  During fiscal 2004, Seneca Energy completed development
                                    of facilities with a  generating capacity of approximately 3.2 MW at a landfill
                                    site in Ontario County, New York.  Model City has a generating capacity of
                                    approximately 5.6 MW and generates electricity using methane gas obtained from a
                                    landfill near Lewiston, New York.  The landfills are owned by outside parties.
                                    Seneca Energy and Model City sell electricity at wholesale to the New York
                                    Independent System Operator.  ESNE owns an 80 MW natural gas-fired cogeneration
                                    power plant located near North East, Pennsylvania.  ESNE sells electricity at
                                    wholesale to the New York Independent System Operator and sells thermal energy to a
                                    grape processing plant.  The Registrant owns 100% of the capital stock of Power.
                                    Part I(b), Part I(c) and Part I(d) for Power are filed pursuant to Rule 104(b).

                           2.       Energy Systems North East, LLC

                           (a)      Energy Systems North East, LLC
                                    10195 Ackerman Lane
                                    North East, Pennsylvania  16428

                                    ESNE has been designated as an exempt wholesale generator by the Federal Energy
                                    Regulatory Commission.  ESNE owns an 80 MW natural gas-fired cogeneration power
                                    plant located near North East, Pennsylvania.  ESNE sells electricity at wholesale
                                    to the New York Independent System Operator and sells thermal energy to a grape
                                    processing plant.  The Registrant owns 100% of the capital stock of Power, which
                                    owns 50% of the limited liability company interests of ESNE.  Part I(b), Part I(c)
                                    and Part I(d) for ESNE are filed pursuant to Rule 104(b).

Part II           Relationship of Exempt Wholesale Generators and Foreign Utility Companies to System Companies

                  Organization charts showing the relationships of TL, UE, Power and ESNE to system companies are
                  provided as Exhibits G-1, and G-2 to this Form U5S.

Part III          Aggregate Investment in Exempt Wholesale Generators and Foreign Utility Companies

                  Part III is filed pursuant to Rule 104(b).


ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
                                        NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                              INDEX TO FINANCIAL STATEMENTS
                                                    SEPTEMBER 30, 2004

                                                                         Page

National Fuel Gas Company and Subsidiaries:
Report of Independent Accountants                                         44
Consolidating and Consolidated Balance Sheet at September 30, 2004       45-48
Consolidating and Consolidated Statement of Income for the Fiscal
  Year Ended September 30, 2004                                          49-50
Consolidating and Consolidated Statement of Earnings Reinvested in
  the Business for the Fiscal Year Ended September 30, 2004              51-52
Consolidating and Consolidated Statement of Comprehensive Income
  for the Fiscal Year Ended September 30, 2004                           53-54
Consolidating and Consolidated Statement of Cash Flows for the
  Fiscal Year Ended September 30, 2004                                   55-58

Seneca Resources Corporation:
Consolidating Balance Sheet at September 30, 2004                         59
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                      60
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                            61
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                                62
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                                63

Seneca Energy Canada, Inc.:
Consolidating Balance Sheet at September 30, 2004                         64
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                      65
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                            66
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                                67
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                                68

Highland Forest Resources, Inc.:
Consolidating Balance Sheet at September 30, 2004                         69
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                      70
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                            71
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                                72
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                                73

Horizon LFG, Inc.:
Consolidating Balance Sheet at September 30, 2004                         74
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                      75
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                            76
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                                77
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                                78


ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (Continued)
                                        NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                              INDEX TO FINANCIAL STATEMENTS
                                                    SEPTEMBER 30, 2004

                                                                          Page

Toro Partners, LP:
Consolidating Balance Sheet at September 30, 2004                         79-80
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                      81-82
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                            83-84
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                                85-86
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                                87-88

Horizon Energy Development, Inc. and Subsidiaries:
Consolidating Balance Sheet at September 30, 2004                         89
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                      90
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                            91
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                                92
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                                93

Horizon Energy Holdings, Inc.:
Consolidating Balance Sheet at September 30, 2004                         94
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                      95
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                            96
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                                97
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                                98

Horizon Energy Development B.V.:
Consolidating Balance Sheet at September 30, 2004                         99
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                     100
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                           101
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                               102
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                               103

United Energy, a.s.:
Consolidating Balance Sheet at September 30, 2004                        104
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                     105
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                           106
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                               107
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                               108

ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (Concluded)
                                        NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                              INDEX TO FINANCIAL STATEMENTS
                                                    SEPTEMBER 30, 2004

                                                                         Page

Horizon Energy Bulgaria, Ltd.:
Consolidating Balance Sheet at September 30, 2004                        109
Consolidating Statement of Income for the Fiscal Year Ended
  September 30, 2004                                                     110
Consolidating Statement of Earnings Reinvested in the Business
  for the Fiscal Year Ended September 30, 2004                           111
Consolidating Statement of Comprehensive Income for the Fiscal Year
  Ended September 30, 2004                                               112
Consolidating Statement of Cash Flows for the Fiscal Year
  Ended September 30, 2004                                               113



Notes to Consolidated Financial Statements                                 *



*   The Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the
    fiscal year ended September 30, 2004, are incorporated herein by reference.


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
and Shareholders of
Natinal Fuel Gas Company

In our opinion, the consolidated financial statements listed in the index appearing under Item 10 on Pages 41 through 43 present fairly, in all material respects, the financial position of National Fuel Gas Company and its subsidiaries at September 30, 2004, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial tatements are the responsibility of the Company’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The consolidating information on Pages 45 through 113 is presented for purposes of additional analysis rather than to present financial position, results of operations and cash flows of the individual companies. Accordingly, we do not express an opinion on the financial position, results of operations and cash flows of the individual companies. However, the consolidating information on Pages 45 through 113 has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as a whole.

PricewaterhouseCoopers LLP

Buffalo, New York
December 9, 2004


                                      NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                             CONSOLIDATING BALANCE SHEET
                                                AT SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)

                                                                                                                                       Horizon
                                          National     National      Seneca                    Highland     Data-Track    National      Energy        Horizon       Seneca      Niagara
                            National      Fuel Gas     Fuel Gas     Resources      Leidy        Forest        Account       Fuel     Development,      LFG,         Indep.    Independence    Horizon  Total Before  Eliminations   Consolidated
                            Fuel Gas     Distribution   Supply     Corporation      Hub,    Resources, Inc.  Services,   Resources,      Inc.          Inc.        Pipeline    Marketing,      Power,  Eliminations  & Adjustments  Company and
                             Company       Corp.        Corp.     (Consolidated)    Inc.    (Consolidated)     Inc.         Inc.     (Consolidated)(Consolidated)  Company       Inc.           Inc.   & Adjustments    Dr (Cr)     Subsidiaries
                           ------------  -----------  ----------- --------------  --------  --------------  ----------   ----------- -------------- -------------  --------   -----------    --------  ------------- -------------  ------------
          ASSETS

PROPERTY, PLANT
& EQUIPMENT                    $ 6,698   $ 1,439,483   $ 851,483   $ 1,558,927          $ -    $ 313,960          $ 86      $ 1,170    $ 408,778      $ 15,180          $ -          $ -       $ 7,014   $ 4,602,779         $ -    $ 4,602,779

Less: Accumulated
Depreciation,
Depletion and
Amortization                       575      391,055      357,484       622,960            -       40,871            84        1,090      180,873           902            -            -           121    1,596,015            -     1,596,015
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                                 6,123    1,048,428      493,999       935,967            -      273,089             2           80      227,905        14,278            -            -         6,893    3,006,764            -     3,006,764
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

CURRENT ASSETS:

Cash and Temporary
Cash Investments                   339        5,085        1,669        16,423           13        2,128           212        9,267       28,357         1,879            -            -           387       65,759          394        66,153
Notes Receivable
- -Intercompany                  285,300            -            -        72,100          200            -           500       22,800          300             -            -            -             -      381,200     (381,200)            -
Allowance for
Uncollectible
Accounts                             -      (12,903)        (611)         (517)           -            -             -       (1,225)      (2,184)            -            -            -             -      (17,440)           -       (17,440)
Accounts Receivable
- -Intercompany                   21,019        6,632       13,348         4,846            -          277            65        3,294           57           543            -            -             8       50,089      (50,089)            -
Accounts Receivable                230       86,352        8,136        27,313            -        5,221             2        9,436        8,592         1,940            -            -            43      147,265            -       147,265
Unbilled Utility
Revenue                              -       18,574            -             -            -            -             -            -            -             -            -            -             -       18,574            -        18,574
Dividends Receivable
- -Intercompany                   22,750            -            -           779            -            -             -            -            -             -            -            -             -       23,529      (23,529)            -
Materials and
Supplies - at
average cost                         -        7,016        8,160           795            -       25,396             -            3        4,079             -            -            -             -       45,449       (1,527)       43,922
Gas Stored
Underground                          -       46,586            -             -            -            -             -       21,925            -             -            -            -             -       68,511            -        68,511
Unrecovered
Purchased
Gas Costs                            -        7,532            -             -            -            -             -            -            -             -            -            -             -        7,532            -         7,532
Fair Value of Derivative
Financial Instruments                -            -           23             -            -            -             -            -            -             -            -            -             -           23            -            23
Prepayments                        358       25,854        3,862         4,333            -        3,204             3          277          722            76            -            -            72       38,761           (1)       38,760
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                               329,996      190,728       34,587       126,072          213       36,226           782       65,777       39,923         4,438            -            -           510      829,252     (455,952)      373,300
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

OTHER ASSETS:

Recoverable Future
Taxes                                -       75,068        4,946             -            -        3,833             -            -            -             -            -            -             -       83,847            -        83,847
Unamortized Debt
Expense                          9,410        5,746        5,854             -            -          281             -            -            -             -            -            -             -       21,291       (1,718)       19,573
Other Regulatory
Assets                               -       57,141        6,898             -            -        2,823             -            -            -             -            -            -             -       66,862            -        66,862
Deferred Charges                 1,843          637        1,444           442            -          415             -          113            6             -            -            -             -        4,900       (1,489)        3,411
Other Investments               41,676            -            -             -            -            -             -            -            -             -            -            -             -       41,676       30,880        72,556
Investment in Unconsolidated
Subsidiaries                         -            -            -             -            -            -             -            -            -             -            -            -        16,444       16,444            -        16,444
Goodwill                             -            -            -             -            -        5,476             -            -            -             -            -            -             -        5,476            -         5,476
Investment in
Associated
Companies                    1,225,680            -           61        19,035            -            -             -            -            -             -            -            -             -    1,244,776   (1,244,776)            -
Notes Receivable -
Intercompany                 1,096,272            -            -             -            -            -             -            -            -             -            -            -             -    1,096,272   (1,096,272)            -
Intangible Assets                9,171            -            -             -            -        6,799             -            -            -        30,024            -            -             -       45,994            -        45,994
Other                                -       12,612          575         2,966            -        1,134             -            -          284             -            -            -             -       17,571            -        17,571
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                             2,384,052      151,204       19,778        22,443            -       20,761             -          113          290        30,024            -            -        16,444    2,645,109   (2,313,375)      331,734
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                             2,720,171    1,390,360      548,364     1,084,482          213      330,076           784       65,970      268,118        48,740            -            -        23,847    6,481,125   (2,769,327)    3,711,798
                           ============  ===========  ===========  ============  ===========  ===========  ============  ===========  ===========   ===========  ===========  ===========   ===========  ===========  ===========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                      NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                             CONSOLIDATING BALANCE SHEET
                                                AT SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)
                                                                                                                                      Horizon
                                          National     National      Seneca                  Highland      Data-Track    National      Energy       Horizon       Seneca       Niagara
                            National      Fuel Gas     Fuel Gas     Resources      Leidy      Forest        Account        Fuel      Development,     LFG,        Indep.     Independence   Horizon    Total Before  Eliminations Consolidated
                            Fuel Gas     Distribution   Supply     Corporation      Hub,   Resources, Inc. Services,    Resources,      Inc.          Inc.       Pipeline     Marketing,     Power,    Eliminations & Adjustments Company and
                             Company       Corp.        Corp.     (Consolidated)    Inc.   (Consolidated)    Inc.          Inc.    (Consolidated)(Consolidated)  Company        Inc.          Inc.     & Adjustments    Dr (Cr)   Subsidiaries
                           ------------  -----------  ----------- -------------    ------  -------------- -----------  -----------  ------------  ------------   --------    -----------   ---------   ------------- ------------ ------------
CAPITALIZATION
AND LIABILITIES

CAPITALIZATION:
Common Stock $1 Par
Value; Authorized -
200,000,000 Shares;
Issued and
Outstanding -
82,990,340 Shares             $ 82,990          $ -          $ -           $ -          $ -          $ -           $ -          $ -          $ -           $ -          $ -          $ -           $ -     $ 82,990          $ -      $ 82,990
Capital Stock of
Subsidiaries                         -       59,170       25,345           500            4            4             1           10            5             1            -            -             1       85,041      (85,041)            -
Paid in Capital                506,560      121,668       35,894       104,035          665       22,039           499       33,490       38,246         6,800            -            -         5,020      874,916     (368,356)      506,560
Earnings  Reinvested
in the Business                718,926      377,792      275,067        18,192         (621)     115,890           263       12,347      (17,227)       (3,979)           -            -          (425)   1,496,225     (777,299)      718,926
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income         1,308,476      558,630      336,306       122,727           48      137,933           763       45,847       21,024         2,822            -            -         4,596    2,539,172   (1,230,696)    1,308,476
Accumulated Other
Comprehensive
Income (Loss)                  (54,775)           -          208       (35,590)           -        1,495             -       (3,048)      35,811        (4,094)           -            -             -      (59,993)       5,218       (54,775)
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Total Comprehensive
Shareholders' Equity         1,253,701      558,630      336,514        87,137           48      139,428           763       42,799       56,835        (1,272)           -            -         4,596    2,479,179   (1,225,478)    1,253,701

Long-Term Debt,
Net of Current
Portion                      1,096,272           18            -             -            -       32,100             -            -        4,927             -            -            -             -    1,133,317            -     1,133,317
Notes Payable -
Intercompany                         -      218,310       39,770       688,422            -       60,000             -            -       89,770             -            -            -             -    1,096,272   (1,096,272)            -
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Total Capitalization         2,349,973      776,958      376,284       775,559           48      231,528           763       42,799      151,532        (1,272)           -            -         4,596    4,708,768   (2,321,750)    2,387,018
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

Minority Interest in
Foreign Subsidiaries                 -            -            -             -            -            -             -            -       37,048             -            -            -             -       37,048            -        37,048
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

CURRENT AND ACCRUED
LIABILITIES:
Notes Payable to
Banks and
Commercial Paper               156,800            -            -             -            -            -             -            -            -             -            -            -             -      156,800            -       156,800
Notes Payable -
Intercompany                    95,900      145,100       33,200             -            -       11,600             -            -       34,700        43,500            -            -        17,200      381,200     (381,200)            -
Current Portion of
Long-Term Debt                       -            -            -             -            -        9,333             -            -        4,927             -            -            -             -       14,260            -        14,260
Accounts Payable                   187       37,580       11,696        36,083            -       11,482            14        5,218       13,186         1,246            -            -           130      116,822         (843)      115,979
Accounts Payable to Customers        -        3,154            -             -            -            -             -            -            -             -            -            -             -        3,154            -         3,154
Accounts Payable -
Intercompany                     5,216       15,982        4,482        17,902           39        2,477            64        4,774        3,565           392            -            -           344       55,237      (55,237)            -
Dividends Payable -
Intercompany                         -        9,100        6,750         4,529            -        1,200             -        1,950            -             -            -            -             -       23,529      (23,529)            -
Fair Value of Derivative
Financial Instruments                -            -            -        82,487            -        2,204             -        3,647            -         6,761            -            -             -       95,099            -        95,099
Other Accruals and
Current Liabilities             43,138       26,442        6,434          (258)         (17)       2,532            (5)      10,329        2,539        (1,028)           -            -           (36)      90,070        1,094        91,164
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                               301,241      237,358       62,562       140,743           22       40,828            73       25,918       58,917        50,871            -            -        17,638      936,171     (459,715)      476,456
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

DEFERRED CREDITS:
Accumulated Deferred
Income  Taxes                  (28,556)     200,015       81,880       133,159          144       57,183           (65)      (3,148)      17,526          (860)           -            -           799      458,077           18       458,095
Taxes Refundable to
Customers                            -       13,741       (2,676)            -            -            -             -            -            -             -            -            -             -       11,065            -        11,065
Unamortized
Investment Tax
Credit                               -        7,280          218             -            -            -             -            -            -             -            -            -             -        7,498            -         7,498
Cost of Removal Regulatory Liab      -       59,944       22,076             -            -            -             -            -            -             -            -            -             -       82,020            -        82,020
Other Regulatory Liabs               -       67,116          553             -            -            -             -            -            -             -            -            -             -       67,669            -        67,669
Pension Liability               91,586            -            -             -            -            1             -            -            -             -            -            -             -       91,587            -        91,587
Asset Retirement Obligation          -            -            -        32,292            -            -             -            -            -             -            -            -             -       32,292            -        32,292
Other Deferred
Credits                          5,927       27,948        7,467         2,729           (1)         536            13          401        3,095             1            -            -           814       48,930       12,120        61,050
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                                68,957      376,044      109,518       168,180          143       57,720           (52)      (2,747)      20,621          (859)           -            -         1,613      799,138       12,138       811,276
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                           $ 2,720,171   $ 1,390,360   $ 548,364   $ 1,084,482        $ 213    $ 330,076         $ 784     $ 65,970    $ 268,118      $ 48,740          $ -          $ -      $ 23,847   $ 6,481,125  $ (2,769,327) $ 3,711,798
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------


See Notes to Consolidated  Financial  Statements  included in Item 8 of National Fuel Gas  Company's  Form 10-K for
the fiscal  year ended  September  30,  2004, incorporated herein by reference.



                                      NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                          CONSOLIDATING STATEMENT OF INCOME
                                     FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)

                                                                                                                                       Horizon
                                          National     National      Seneca                   Highland     Data-Track     National      Energy       Horizon       Seneca       Niagara
                            National      Fuel Gas     Fuel Gas     Resources      Leidy       Forest        Account        Fuel      Development,     LFG,        Indep.     Independence   Horizon    Total Before  Eliminations  Consolidated
                            Fuel Gas     Distribution   Supply     Corporation      Hub,    Resources, Inc. Services,    Resources,      Inc.          Inc.       Pipeline     Marketing,     Power,    Eliminations  & Adjustments Company and
                             Company       Corp.        Corp.     (Consolidated)    Inc.    (Consolidated)    Inc.          Inc.     (Consolidated)(Consolidated) Company        Inc.          Inc.     & Adjustments   Dr (Cr)     Subsidiaries
                           ------------  -----------  ----------- --------------   ------   -------------- ------------  ----------- ------------- -------------  --------    -----------   ---------   -------------  -----------  ------------


OPERATING REVENUE:             $ 2,512   $ 1,152,641   $ 176,284     $ 301,784          $ -     $ 89,019         $ 212    $ 284,349    $ 123,425      $ 13,237          $ -          $ -         $ 247   $ 2,143,710  $ (112,317)   $ 2,031,393
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

OPERATING EXPENSE:
Purchased Gas                        -      774,498         (588)           12            -            -             -      271,223            -         5,992            -            -             -    1,051,137     (101,685)      949,452
Fuel Used in Heat and
Electric Generation                  -            -            -             -            -            -             -           (1)      65,723             -            -            -             -       65,722            -        65,722
Operation and Maintenance        7,393      194,043       63,347        73,023            8       47,309           206        3,892       32,484         2,871           20            1         1,107      425,704      (12,111)      413,593
Property, Franchise &
Other Taxes                        (86)      46,357       11,280         5,580            -        5,365             -          385        3,157            50            -            -            23       72,111            -        72,111
Impairment of Oil & Gas
Producing Properties                 -            -            -             -            -            -             -            -            -             -            -            -             -            -            -             -
Depreciation, Depletion
and Amortization                   442       39,101       25,890        90,273            -       17,400             5          102       15,257         1,051            -            -            14      189,535            3       189,538
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
                                 7,749    1,053,999       99,929       168,888            8       70,074           211      275,601      116,621         9,964           20            1         1,144    1,804,209     (113,793)    1,690,416
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Gain on Sale of Timber
Properties                           -            -            -             -            -       (1,252)            -            -            -             -            -            -             -       (1,252)           -        (1,252)
Loss on Sale of Oil & Gas
Producing Properties                 -            -            -         4,645            -            -             -            -            -             -            -            -             -        4,645            -         4,645
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

Operating Income
(Loss)                          (5,237)      98,642       76,355       137,541           (8)      17,693             1        8,748        6,804         3,273          (20)          (1)         (897)     342,894        1,476       344,370
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

OTHER INCOME (EXPENSE):
Income from Unconsolidated           -            -            -             -            -            -             -            -            -             -            -            -           805          805            -           805
Subsidiaries
Unremitted Earnings/(Loss)
of Subsidiaries                 86,777            -            -             -            -            -             -            -            -             -            -            -             -       86,777      (86,777)            -
Dividends from
Subsidiaries                    82,500            -            -         2,466            -            -             -            -            -             -            -            -             -       84,966      (84,966)            -
Interest-Intercompany           83,346            -          114         1,573            8            -             6          459            4             -            -            -             -       85,510      (85,510)            -
Other Income                     1,214        1,414          452           361            -          321             -          325        2,051            29          261            -            64        6,492          179         6,671
Interest on Long-Term
Debt                           (80,670)           -            -             -            -       (2,320)            -            -         (837)            -            -            -             -      (83,827)           -       (83,827)
Interest-Intercompany           (1,174)     (18,016)      (5,957)      (49,953)           -       (3,864)            -            -       (5,891)         (595)         (60)           -             -      (85,510)      85,510             -
Other Interest                    (697)      (3,929)        (913)         (688)           -          (35)            -          (32)        (352)          (58)           -            -          (268)      (6,972)         209        (6,763)
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

Income (Loss) Before
Income Taxes
and Minority
Interest in
Foreign
Subsidiaries                   166,059       78,111       70,051        91,300            -       11,795             7        9,500        1,779         2,649          181           (1)         (296)     431,135     (169,879)      261,256
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

Income Taxes                      (527)      31,393       28,208        30,868           (7)       4,036             -        3,964       (6,137)          837           63            -             -       92,698           39        92,737
Minority Interest in
Foreign Subsidiaries                 -            -            -             -            -            -             -            -       (1,933)            -            -            -             -       (1,933)           -        (1,933)
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

Income/(Loss) Before
Cumulative Effect              166,586       46,718       41,843        60,432            7        7,759             7        5,536        5,983         1,812          118           (1)         (296)     336,504     (169,918)      166,586
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Cumulative Effect of
Change in Accounting                 -            -            -             -            -            -             -            -            -             -            -            -             -            -            -             -
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

Net Income (Loss)
Available for
Common Stock                 $ 166,586     $ 46,718     $ 41,843      $ 60,432          $ 7      $ 7,759           $ 7      $ 5,536      $ 5,983       $ 1,812        $ 118         $ (1)       $ (296)   $ 336,504   $ (169,918)    $ 166,586
                           ============  ===========  ===========  ============  ===========  ===========  ============  ===========  ===========   ===========  ===========  ===========   ===========  ===========  ===========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National                                         Basic Earnings Per Common Share
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,                                         Income Before Cumulative Effect of Changes in Accounting                                                       $ 2.03
incorporated herein by reference.                                                                                        Cumulative Effect of Changes in Accounting                                                                        $ -
                                                                                                                                                                                                                                    -----------
                                                                                                                         Net Income Available for Common Stock                                                                          $ 2.03
                                                                                                                                                                                                                                    ===========

                                                                                                                         Diluted Earnings Per Common Share
                                                                                                                         Income Before Cumulative Effect of Changes in Accounting                                                       $ 2.01
                                                                                                                         Cumulative Effect of Changes in Accounting                                                                        $ -
                                                                                                                                                                                                                                    -----------
                                                                                                                         Net Income Available for Common Stock                                                                          $ 2.01
                                                                                                                                                                                                                                    ===========

                                                                                                                         Weighted Average Common Shares Outstanding
                                                                                                                         Used in Basic Calculation                                                                                  82,045,535
                                                                                                                                                                                                                                    ===========
                                                                                                                         Used in Diluted Calculation                                                                                82,900,438
                                                                                                                                                                                                                                    ===========






                                      NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                            CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                     FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)

                                                                                                                                       Horizon
                                          National     National      Seneca                   Highland     Data-Track     National      Energy       Horizon       Seneca       Niagara
                            National      Fuel Gas     Fuel Gas     Resources      Leidy       Forest        Account        Fuel      Development,     LFG,        Indep.     Independence   Horizon    Total Before  Eliminations  Consolidated
                            Fuel Gas     Distribution   Supply     Corporation      Hub,    Resources, Inc. Services,    Resources,      Inc.          Inc.       Pipeline     Marketing,     Power,    Eliminations  & Adjustments Company and
                             Company       Corp.        Corp.     (Consolidated)    Inc.    (Consolidated)     Inc.          Inc.   (Consolidated)(Consolidated)  Company        Inc.          Inc.     & Adjustments   Dr (Cr)     Subsidiaries
                           ------------  -----------  -----------  ------------    ------   -------------- -----------   ----------  ------------  ------------   ---------  -----------   -----------  ------------- ------------- ------------

EARNINGS REINVESTED
IN THE BUSINESS

Balance at Beginning
of Year                      $ 642,690    $ 367,474    $ 259,724     $ (28,273)      $ (628)   $ 111,931         $ 256     $ 11,111    $ (23,210)     $ (5,791)    $ (9,778)         $ -        $ (129)  $ 1,325,377  $ (682,687)    $ 642,690

Net Income (Loss)
Available for
Common Stock                   166,586       46,718       41,843        60,432            7        7,759             7        5,536        5,983         1,812          118           (1)         (296)     336,504     (169,918)      166,586

Distribution of (Earnings)/Loss
due to dissolution of the
company                              -            -            -             -            -            -             -            -            -             -        9,660            1             -        9,661       (9,661)            -

Dividends on Common
Stock (2004 - $1.10
per share)                     (90,350)     (36,400)     (26,500)      (13,967)           -       (3,800)            -       (4,300)           -             -            -            -             -     (175,317)      84,967       (90,350)
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------


Balance at End of Year       $ 718,926    $ 377,792    $ 275,067      $ 18,192       $ (621)   $ 115,890         $ 263     $ 12,347    $ (17,227)     $ (3,979)         $ -          $ -        $ (425)  $ 1,496,225  $ (777,299)    $ 718,926
                           ============  ===========  ===========  ============  ===========  ===========  ============  ===========  ===========   ===========  ===========  ===========   ===========  ===========  ===========   ===========




        At September 30, 2004                                                                                                                           ANALYSIS OF INVESTMENTS IN ASSOCIATED COMPANIES AT SEPTEMBER 30, 2004

                                                                                                                                                      Par or                   Earnings                              Total Investment
Intercompany Eliminations:                                                                                                                          Stated Value              Reinvested in Unremitted   Accumulated   in Associated
                                                                                                                                                        of          Paid      the Business   Earnings      Other        Companies
                                                                                                                                                    Subsidiary       In           at          Since      Comprehensive      at
Earnings Reinvested in the Business:                                                                                                                  Stock       Capital     Acquisition   Acquisition    Income        Equity
                                                                                                                                                    -----------  -----------  -----------   -----------  -----------  ---------------
Unremitted Earnings of Subsidiaries                                                                                      Registrant:
Since Acquisition                                        789,469                                                         Distribution
Earnings Reinvested in the Business                                                                                      Corporation                  $ 59,170    $ 121,668      $ 4,636     $ 373,156          $ -    $ 558,630
of Subsidiaries at Acquisition                             7,095                                                         Supply Corporation             25,345       35,833        2,453       272,614          208      336,453
Consolidating Adjustment                                 (19,265)                                                        Seneca Resources                  500      104,035            6        18,186      (35,590)      87,137
                                                      -----------
                                                       $ 777,299                                                         Leidy Hub                           4          665            -          (621)           -           48
                                                      ===========
                                                                                                                         Highland                            4        3,004            -       115,890        1,495      120,393
                                                                                                                         Data-Track                          1          499            -           263            -          763
Net Income Available for Common Stock:                                                                                   NFR                                10       33,490            -        12,347       (3,048)      42,799
Subsidiaries-Dividends on                                                                                                Horizon                             5       38,246            -       (17,227)      35,811       56,835
Common Stock                                              84,967                                                         Horizon LFG                         1        6,800            -        (3,979)      (4,094)      (1,272)
Unremitted Earnings of Subsidiaries                       86,777                                                         Seneca Independence                 -            -            -             -            -            -
Consolidating Adjustment                                  (1,826)                                                        Niagara Independence                -            -            -             -            -            -
                                                      -----------
                                                         169,918                                                         Horizon Power, Inc.                 1        5,020            -          (425)           -        4,596
                                                      ===========
                                                                                                                         Consolidating
                                                                                                                         Adjustment                          -            -            -        19,265           33       19,298
                                                                                                                                                    -----------  -----------  -----------   -----------  -----------  -----------
                                                                                                                                                        85,041      349,260        7,095       789,469       (5,185)   1,225,680

See Notes to Consolidated  Financial  Statements  included in Item 8 of National                                         Seneca Corporation:
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,                                         Highland                            -       19,035            -             -            -       19,035
incorporated herein by reference.                                                                                        Supply Corporation:
                                                                                                                         Seneca Resources                    -           61            -             -            -           61
                                                                                                                                                    -----------  -----------  -----------   -----------  -----------  -----------
                                                                                                                                                      $ 85,041    $ 368,356      $ 7,095     $ 789,469     $ (5,185)  $ 1,244,776
                                                                                                                                                    ===========  ===========  ===========   ===========  ===========  ===========




                                      NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                   CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                     FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)

                                                                                                                                       Horizon
                                          National     National      Seneca                   Highland      Data-Track    National      Energy       Horizon       Seneca       Niagara
                            National      Fuel Gas     Fuel Gas     Resources      Leidy       Forest        Account        Fuel      Development,     LFG,        Indep.     Independence   Horizon    Total Before  Eliminations  Consolidated
                            Fuel Gas     Distribution   Supply     Corporation      Hub,    Resources, Inc. Services,    Resources,      Inc.          Inc.       Pipeline     Marketing,     Power,    Eliminations  & Adjustments Company and
                             Company       Corp.        Corp.     (Consolidated)    Inc.    (Consolidated)   Inc.          Inc.      (Consolidated)(Consolidated) Company        Inc.          Inc.     & Adjustments   Dr (Cr)      Subsidiaries
                           ------------  -----------  -----------  ------------    ------   --------------  ----------  -----------  ------------- ------------- ----------  -----------   -----------  -----------   ------------- -------------
Net Income (Loss) Available
for Common Stock             $ 166,586     $ 46,718     $ 41,843      $ 60,432          $ 7      $ 7,759           $ 7      $ 5,536      $ 5,983       $ 1,812        $ 118         $ (1)       $ (296)   $ 336,504   $ (169,918)    $ 166,586

Other Comprehensive Income
(Loss), Before Tax:
Minimum Pension Liability Adj.  56,612            -            -             -            -            -             -            -            -             -            -            -             -       56,612            -        56,612
Foreign Currency
Translation Adjustment          21,466            -            -         7,477            -            -             -            -       13,989             -            -            -             -       42,932      (21,466)       21,466
Unrealized Gain on
Securities Available
for Sale Arising During
the Period                       3,629            -            -             -            -            -             -            -            -             -            -            -             -        3,629            -         3,629
Unrealized Gain / (Loss) on
Derivative Financial
Instruments Arising During
the Period                    (129,934)           -       (1,230)     (113,792)           -         (693)            -       (6,107)           -        (8,111)           -            -             -     (259,867)     129,933      (129,934)
Reclassification Adjustment
for Realized (Gain)/Loss on
Derivative Financial Instruments
in Net Income                   49,142            -        1,373        44,707            -        1,964             -        1,171            -           (73)           -            -             -       98,284      (49,142)       49,142
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Other Comprehensive Income
(Loss), Before Tax                 915            -          143       (61,608)           -        1,271             -       (4,936)      13,989        (8,184)           -            -             -      (58,410)      59,325           915
Income Tax Benefit Related
to Minimum Pension Liability    19,814            -            -             -            -            -             -            -            -             -            -            -             -       19,814            -        19,814
Income Tax Expense/(Benefit) Related
to Unrealized Gain/(Loss)
on Securities Available
for Sale Arising During
the Period                       1,270            -            -             -            -            -             -            -            -             -            -            -             -        1,270            -         1,270
Income Tax Expense/(Benefit) Related
to Unrealized Gain/(Loss)
on Derivative Financial
Instruments Arising During
the Period                     (49,113)           -         (505)      (43,226)           -            -             -       (2,464)           -        (2,918)           -            -             -      (98,226)      49,113       (49,113)
Reclassification Adjustment for
for Realized (Gain)/Loss on
Derivative Financial
Instruments in Net Income       18,182            -          563        16,983            -            -             -          472            -           164            -            -             -       36,364      (18,182)       18,182
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Income Taxes - Net              (9,847)           -           58       (26,243)           -            -             -       (1,992)           -        (2,754)           -            -             -      (40,778)      30,931        (9,847)
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------
Other Comprehensive Income/
(Loss)                          10,762            -           85       (35,365)           -        1,271             -       (2,944)      13,989        (5,430)           -            -             -      (17,632)      28,394        10,762
                           ------------  -----------  -----------  ------------  -----------  -----------  ------------  -----------  -----------   -----------  -----------  -----------   -----------  -----------  -----------   -----------

Comprehensive Income (Loss)  $ 177,348     $ 46,718     $ 41,928      $ 25,067          $ 7      $ 9,030           $ 7      $ 2,592     $ 19,972      $ (3,618)       $ 118         $ (1)       $ (296)   $ 318,872   $ (141,524)    $ 177,348
                           ============  ===========  ===========  ============  ===========  ===========  ============  ===========  ===========   ===========  ===========  ===========   ===========  ===========  ===========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                       NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                         CONSOLIDATING STATEMENT OF CASH FLOWS
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                                                                                                        Horizon
                                              National     National      Seneca                  Highland      Data-Track   National     Energy        Horizon       Seneca       Niagara
                                 National     Fuel Gas     Fuel Gas     Resources     Leidy       Forest        Account       Fuel     Development,     LFG,         Indep.     Independence  Horizon   Total Before Eliminations   Consolidated
                                 Fuel Gas    Distribution   Supply      Corporation    Hub,     Resources, Inc. Services,  Resources,     Inc.          Inc.        Pipeline     Marketing,    Power,   Eliminations & Adjustments  Company and
                                 Company       Corp.        Corp.      (Consolidated)  Inc.    (Consolidated)     Inc.        Inc.    (Consolidated)(Consolidated)  Company        Inc.         Inc.    & Adjustments   Dr (Cr)     Subsidiaries
                                -----------  -----------  -----------  -----------  ----------- -------------  ----------  ----------- ------------- ------------   ---------  -----------  ----------  ------------- ------------ ------------
OPERATING ACTIVITIES:
Net Income (Loss) Available
for Common Stock                 $ 166,586     $ 46,718     $ 41,843     $ 60,432          $ 7      $ 7,759          $ 7      $ 5,536      $ 5,983      $ 1,812        $ 118         $ (1)     $ (296)   $ 336,504    $ (169,918)  $ 166,586
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Gain on Sale of Timber Property          -            -            -            -            -        1,252            -            -            -            -            -            -           -        1,252            -        1,252
Loss on Sale of Oil & Gas Prop.          -            -            -       (4,645)           -            -            -            -            -            -            -            -           -       (4,645)           -       (4,645)
Unremitted (Earnings)/Loss of
Subsidiaries                       (86,777)           -            -            -            -            -            -            -            -            -            -            -           -      (86,777)      86,777            -
Depreciation, Depletion
and Amortization                       442       39,101       25,890       90,273            -       17,400            5          102       15,257        1,051            -            -          14      189,535            3      189,538
Deferred Income Taxes                  493       13,151        5,582       25,674           12       (3,114)          (3)         917       (4,703)       1,733           91            -         496       40,329            -       40,329
(Income) Loss from Unconsolidated
Subsidiaries, Net of Cash
Distributions                            -            -            -            -            -            -            -            -            -            -            -            -         (19)         (19)           -          (19)
Minority Interest in Foreign
Subsidiaries                             -            -            -            -            -            -            -            -        1,933            -            -            -           -        1,933            -        1,933
Other                                1,336          (44)      (1,655)       2,404            -        1,173            -            -         (420)       1,498            -            -           -        4,292        5,547        9,839

Change in:
Receivables and Unbilled
Utility Revenue                        159        6,847        1,581           (3)           -         (155)           -       (1,827)        (883)        (900)           -            -          21        4,840            -        4,840
Accounts Receivable-
Intercompany                        (2,857)         720        3,414       (1,290)           -          262           (5)      (3,139)         (35)        (364)           -            -           4       (3,290)       3,290            -
Gas Stored Underground
and Material and Supplies                -       27,777          166          298            -      (11,050)           -       (7,273)         (25)           -            -            -           -        9,893          (33)       9,860
Unrecovered Purchased Gas Costs          -       21,160            -            -            -            -            -            -            -            -            -            -           -       21,160            -       21,160
Prepayments                            (43)       4,662        2,140        1,378            -          921            -         (164)        (610)         (76)           -            -         (62)       8,146            -        8,146
Accounts Payable                        27      (15,068)      (1,558)       1,765            -        7,293            -         (897)      (1,632)       1,013            -            -        (254)      (9,311)       4,177       (5,134)
Amounts Payable to Customers             -        2,462            -            -            -            -            -            -            -            -            -            -           -        2,462            -        2,462
Accounts Payable-Intercompany        3,972        3,195        2,414        1,265            2         (178)           7        5,707          935          240          (17)           -         240       17,782      (17,782)           -
Other Accruals and Current
Liabilities                         (3,260)      12,496         (217)      19,307          (25)        (631)           3        5,518        1,489       (1,020)       3,972            -       1,039       38,671           47       38,718
Other Assets                       (15,456)     (15,443)      (4,176)      (2,906)           1         (760)           -        2,562          102        1,155            8            -           -      (34,913)      24,220      (10,693)
Other Liabilities                   (2,744)      (2,851)        (414)        (477)          (1)        (905)           -       (2,394)         106       (2,273)           -            -         749      (11,204)     (18,668)     (29,872)
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------

Net Cash Provided by
(Used in) Operating
Activities                        $ 61,878    $ 144,883     $ 75,010    $ 193,475         $ (4)    $ 19,267         $ 14      $ 4,648     $ 17,497      $ 3,869      $ 4,172         $ (1)    $ 1,932    $ 526,640    $ (82,340)   $ 444,300
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                       NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
                                         CONSOLIDATING STATEMENT OF CASH FLOWS
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                                                                                                         Horizon
                                              National     National      Seneca                 Highland      Data-Track    National      Energy       Horizon       Seneca       Niagara
                                 National     Fuel Gas     Fuel Gas    Resources      Leidy      Forest        Account        Fuel      Development,     LFG,        Indep.    Independence  Horizon   Total Before  Eliminations  Consolidated
                                 Fuel Gas    Distribution   Supply     Corporation     Hub,   Resources, Inc.  Services,    Resources,      Inc.         Inc.       Pipeline     Marketing,   Power,   Eliminations  & Adjustments Company and
                                 Company       Corp.        Corp.     (Consolidated)  Inc.    (Consolidated)     Inc.         Inc.     (Consolidated)(Consolidated) Company        Inc.        Inc.    & Adjustments     Dr (Cr)   Subsidiaries
                                -----------  -----------  ----------   ------------  -------- --------------- -----------  -----------  ------------ -------------  ---------  -----------  ----------   ----------  ------------- ------------
INVESTING ACTIVITIES:
Capital Expenditures              $ (5,511)   $ (55,449)   $ (23,025)   $ (77,721)         $ -     $ (2,927)         $ -        $ (11)    $ (7,498)      $ (197)         $ -          $ -        $ (2)   $ (172,341)        $ -   $ (172,341)
Capital Contributions               (9,481)           -            -            -         (700)           -            -            -            -            -       10,181            -           -            -            -            -
Change in Notes
Receivable - Intercompany          162,828            -       13,100      (72,100)         600            -            -        5,300          300            -            -            -           -      110,028     (110,028)           -
Net Proceeds from Sale of
Oil & Gas Properties                     -            -            -        7,162            -            -            -            -            -            -            -            -           -        7,162            -        7,162
Other                                  830         (278)       3,582       (1,083)           -          232            -            -        1,011            -            -            -           -        4,294       (2,320)       1,974
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------

Net Cash Provided by (Used In)
Investing  Activities              148,666      (55,727)      (6,343)    (143,742)        (100)      (2,695)           -        5,289       (6,187)        (197)      10,181            -          (2)     (50,857)    (112,348)    (163,205)
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------

FINANCING ACTIVITIES:
Change in Notes Payable to
Banks and Commercial Paper          38,600            -            -            -            -            -            -            -            -            -            -            -           -       38,600            -       38,600
Change in Notes
Payable-Intercompany                35,500      (47,900)     (41,800)     (32,828)           -       (7,200)           -            -        5,000       (4,800)     (14,400)           -      (1,600)    (110,028)     110,028            -
Net Proceeds from Issuance of
Long-Term Debt                           -            -            -            -            -            -            -            -            -            -            -            -           -            -            -            -
Reduction of Long-Term Debt       (225,128)         (84)           -            -            -       (9,333)           -            -       (8,540)           -            -            -           -     (243,085)           -     (243,085)
Proceeds from Issuance of
Common Stock                        29,312            -            -            -            -            -            -            -            -            -            -            -           -       29,312       (5,549)      23,763
Dividends Paid on Common Stock     (89,092)     (36,400)     (26,250)     (11,892)           -       (3,300)           -       (2,550)           -            -            -            -           -     (169,484)      80,392      (89,092)
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------

Net Cash Provided by (Used in)
Financing Activities              (210,808)     (84,384)     (68,050)     (44,720)           -      (19,833)           -       (2,550)      (3,540)      (4,800)     (14,400)           -      (1,600)    (454,685)     184,871     (269,814)
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------

Effect of Exchange Rates
on Cash                                  -            -            -        1,203            -            -            -            -        2,248            -            -            -           -        3,451            -        3,451
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------

Net Increase (Decrease) in
Cash and Temporary Cash
Investments                           (264)       4,772          617        6,216         (104)      (3,261)          14        7,387       10,018       (1,128)         (47)          (1)        330       24,549       (9,817)      14,732

Cash and Temporary Cash
Investments at Beginning
of Year                                603          313        1,052       10,207          117        5,389          198        1,880       18,339        3,007           47            1          57       41,210       10,211       51,421
                                -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------   ----------   ----------  -----------

Cash and Temporary Cash
Investments at End of Year           $ 339      $ 5,085      $ 1,669     $ 16,423         $ 13      $ 2,128        $ 212      $ 9,267     $ 28,357      $ 1,879          $ -          $ -       $ 387     $ 65,759        $ 394     $ 66,153
                                ===========  ===========  ===========  ===========  ===========  ===========  ===========  ===========  ===========  ===========  ===========  ===========  ==========   ==========   ==========  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                              SENECA RESOURCES CORPORATION
                                              CONSOLIDATING BALANCE SHEET
                                                 AT SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)


                                          Seneca         Seneca Energy                                    Consolidated
                                         Resources        Canada, Inc.   Total Before                      Seneca and
                                        Corporation     (Consolidated)   Eliminations    Eliminations     Subsidiaries
                                       --------------   --------------  ---------------  -------------    --------------

ASSETS

PROPERTY, PLANT & EQUIPMENT              $ 1,217,784        $ 341,143      $ 1,558,927             $ -      $ 1,558,927
Less: Accumulated  DD&A                      424,678          198,282          622,960               -          622,960
                                       --------------   --------------  ---------------  --------------   --------------
                                             793,106          142,861          935,967               -          935,967
                                       --------------   --------------  ---------------  --------------   --------------
CURRENT ASSETS:
Cash and Temporary Cash Investments            2,589           13,834           16,423               -           16,423
Allowance for Uncollectible Accounts            (517)               -             (517)              -             (517)
Notes Receivable - Intercompany               72,100                -           72,100               -           72,100
Accounts Receivable                           21,171            6,142           27,313               -           27,313
Accounts Receivable - Intercompany            34,230                -           34,230         (29,384)           4,846
Dividends Receivable - Intercompany              779                -              779               -              779
Materials and Supplies                           155              640              795               -              795
Fair Value of Derivative Financial Instruments     -                -                -               -                -
Prepayments                                    4,165              168            4,333               -            4,333
                                       --------------   --------------  ---------------  --------------   --------------
                                             134,672           20,784          155,456         (29,384)         126,072
                                       --------------   --------------  ---------------  --------------   --------------
OTHER ASSETS:
Investment in Seneca Energy Canada, Inc.     (41,268)               -          (41,268)         41,268                -
Investment in Highland                        19,035                -           19,035               -           19,035
Deferred Charges                                 260              182              442               -              442
Notes Receivable - Intercompany              146,797                -          146,797        (146,797)               -
Other Assets                                   2,966                -            2,966               -            2,966
                                       --------------   --------------  ---------------  --------------   --------------
                                             127,790              182          127,972        (105,529)          22,443
                                       --------------   --------------  ---------------  --------------   --------------
TOTAL ASSETS                             $ 1,055,568        $ 163,827      $ 1,219,395      $ (134,913)     $ 1,084,482
                                       ==============   ==============  ===============  ==============   ==============

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                                     500                -              500               -              500
Paid - in - Capital                          104,035          111,076          215,111        (111,076)         104,035
Earnings Reinvested in the Business           18,192         (168,048)        (149,856)        168,048           18,192
                                       --------------   --------------  ---------------  --------------   --------------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income                         122,727          (56,972)          65,755          56,972          122,727
Accumulated Other
Comprehensive Income (Loss)                  (35,590)          15,704          (19,886)        (15,704)         (35,590)
                                       --------------   --------------  ---------------  --------------   --------------
Total Comprehensive Shareholders' Equity      87,137          (41,268)          45,869          41,268           87,137


Notes Payable-Intercompany                   688,422          146,797          835,219        (146,797)         688,422
                                       --------------   --------------  ---------------  --------------   --------------

Total Capitalization                         775,559          105,529          881,088        (105,529)         775,559
                                       --------------   --------------  ---------------  --------------   --------------

CURRENT AND ACCRUED LIABILITIES:
Notes Payable to Banks and
Commercial Paper                                   -                -                -               -                -
Accounts Payable                              24,565           11,518           36,083               -           36,083
Notes Payable - Intercompany                       -                -                -               -                -
Accounts Payable - Intercompany               17,902           29,384           47,286         (29,384)          17,902
Dividends Payable - Intercompany               4,529                -            4,529               -            4,529
Fair Value of Derivative Financial Instru.    82,487                -           82,487               -           82,487
Other Accruals and Current
Liabilities                                     (281)              23             (258)              -             (258)
                                       --------------   --------------  ---------------  --------------   --------------
                                             129,202           40,925          170,127         (29,384)         140,743
                                       --------------   --------------  ---------------  --------------   --------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes            118,752           14,407          133,159               -          133,159
Pension Liability                                  -                -                -               -                -
Asset Retirement Obligation                   29,326            2,966           32,292               -           32,292
Other Deferred Credits                         2,729                -            2,729               -            2,729
                                       --------------   --------------  ---------------  --------------   --------------
                                             150,807           17,373          168,180               -          168,180
                                       --------------   --------------  ---------------  --------------   --------------

TOTAL CAPITALIZATION & LIABILITIES       $ 1,055,568        $ 163,827      $ 1,219,395      $ (134,913)     $ 1,084,482
                                       ==============   ==============  ===============  ==============   ==============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                             SENECA RESOURCES CORPORATION
                                           CONSOLIDATING STATEMENT OF INCOME
                                     FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)

                                          Seneca         Seneca Energy                                    Consolidated
                                         Resources        Canada, Inc.   Total Before                      Seneca and
                                        Corporation     (Consolidated)   Eliminations     Eliminations    Subsidiaries
                                       --------------   --------------  ---------------  --------------   --------------

OPERATING REVENUE:                         $ 261,151         $ 40,633        $ 301,784             $ -        $ 301,784
                                       --------------   --------------  ---------------  --------------   --------------

OPERATING EXPENSE:
Purchased Gas                                     12                -               12               -               12
Operation and Maintenance                     61,611           11,412           73,023               -           73,023
Property, Franchise & Other Taxes              4,980              600            5,580               -            5,580
Depreciation, Depletion and
Amortization                                  75,168           15,105           90,273               -           90,273
                                       --------------   --------------  ---------------  --------------   --------------
                                             141,771           27,117          168,888               -          168,888
Gain on Sale of Oil & Gas
Producing Properties                               -            4,645            4,645               -            4,645
                                       --------------   --------------  ---------------  --------------   --------------

Operating Income (Loss)                      119,380           18,161          137,541               -          137,541
                                       --------------   --------------  ---------------  --------------   --------------

OTHER INCOME (EXPENSE):
Unremitted Earnings/(Loss) of
Subsidiary                                    10,553                -           10,553         (10,553)               -
Dividends from Subsidiaries                    2,466                -            2,466               -            2,466
Interest - Intercompany                        3,785                -            3,785          (2,212)           1,573
Other Income                                     361                -              361               -              361
Interest - Intercompany                      (49,953)          (2,212)         (52,165)          2,212          (49,953)
Other Interest                                  (279)            (409)            (688)              -             (688)
                                       --------------   --------------  ---------------  --------------   --------------

Income (Loss) Before
Income Taxes                                  86,313           15,540          101,853         (10,553)          91,300
                                       --------------   --------------  ---------------  --------------   --------------

Income Taxes                                  25,881            4,987           30,868               -           30,868
                                       --------------   --------------  ---------------  --------------   --------------

Net Income (Loss) Available
for Common Stock                            $ 60,432         $ 10,553         $ 70,985       $ (10,553)        $ 60,432
                                       ==============   ==============  ===============  ==============   ==============


See Notes to  Consolidated  Financial  Statements  included  in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2004,
incorporated herein by reference.



                                             SENECA RESOURCES CORPORATION
                            CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                     FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)


                                          Seneca         Seneca Energy                                    Consolidated
                                         Resources        Canada, Inc.   Total Before                      Seneca and
EARNINGS REINVESTED IN THE BUSINESS     Corporation     (Consolidated)   Eliminations     Eliminations    Subsidiaries
                                       --------------   --------------  ---------------  --------------   --------------

Balance at Beginning of Year               $ (28,273)      $ (178,601)      $ (206,874)      $ 178,601        $ (28,273)


Net Income (Loss) Available
for Common Stock                              60,432           10,553           70,985         (10,553)          60,432


Dividends on Common Stock                    (13,967)               -          (13,967)              -          (13,967)
                                       --------------   --------------  ---------------  --------------   --------------


Balance at End of Year                      $ 18,192       $ (168,048)      $ (149,856)      $ 168,048         $ 18,192
                                       ==============   ==============  ===============  ==============   ==============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                             SENECA RESOURCES CORPORATION
                                    CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                     FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                (THOUSANDS OF DOLLARS)


                                          Seneca         Seneca Energy                                     Consolidated
                                         Resources        Canada, Inc.   Total Before                       Seneca and
                                        Corporation     (Consolidated)   Eliminations     Eliminations     Subsidiaries
                                       --------------   --------------  ---------------  --------------   --------------

Net Income (Loss) Available
for Common Stock                            $ 60,432         $ 10,553         $ 70,985       $ (10,553)        $ 60,432
                                       --------------   --------------  ---------------  --------------   --------------

Other Comprehensive Income
(Loss), Before Tax:
Foreign Currency
Translation Adjustment                         7,477            7,477           14,954          (7,477)           7,477
Unrealized Loss on Derivative
Financial Instruments Arising
During the Period                           (113,792)               -         (113,792)              -         (113,792)
Reclassification Adjustment for Realized
Loss on Derivative Financial
Instruments in Net Income                     44,707                -           44,707               -           44,707
                                       --------------   --------------  ---------------  --------------   --------------
Other Comprehensive Income (Loss),
 Before Tax                                  (61,608)           7,477          (54,131)         (7,477)         (61,608)
Income Tax Benefit Related to Unrealized
Loss on Derivative Financial
Instruments Arising During the Period        (43,226)               -          (43,226)              -          (43,226)
Reclassification Adjustment for Income Tax
Benefit on Realized Loss on Derivative
Financial Instruments Realized In Net Income  16,983                -           16,983               -           16,983
                                       --------------   --------------  ---------------  --------------   --------------

Income Taxes - Net                           (26,243)               -          (26,243)              -          (26,243)
                                       --------------   --------------  ---------------  --------------   --------------

Other Comprehensive Income (Loss)            (35,365)           7,477          (27,888)         (7,477)         (35,365)
                                       --------------   --------------  ---------------  --------------   --------------

Comprehensive Income                        $ 25,067         $ 18,030         $ 43,097       $ (18,030)        $ 25,067
                                       ==============   ==============  ===============  ==============   ==============



See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                            SENECA RESOURCES CORPORATION
                                       CONSOLIDATING STATEMENT OF CASH FLOWS
                                    FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                               (THOUSANDS OF DOLLARS)

                                             Seneca       Seneca Energy                                  Consolidated
                                           Resources       Canada, Inc.  Total Before                     Seneca and
                                          Corporation    (Consolidated)  Eliminations   Eliminations      Subsidiary
                                          -------------  --------------  -------------  -------------   -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                             $ 60,432        $ 10,553       $ 70,985      $ (10,553)       $ 60,432
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted (Earnings)/Loss of Subsidiary       (10,553)              -        (10,553)        10,553               -
Gain on Sale of Oil & Gas Producing Properties       -          (4,645)        (4,645)             -          (4,645)
Depreciation, Depletion &
Amortization                                    75,168          15,105         90,273              -          90,273
Deferred Income Taxes                           20,889           4,785         25,674              -          25,674
Other                                            2,323            (732)         1,591            813           2,404

Change in:
Receivables and Unbilled Utility
Revenue                                           (392)            389             (3)             -              (3)
Accounts Receivable - Intercompany              (4,551)              -         (4,551)         3,261          (1,290)
Materials and Supplies                             152             146            298              -             298
Prepayments                                        891             487          1,378              -           1,378
Accounts Payable                                 1,612             992          2,604           (839)          1,765
Accounts Payable - Intercompany                  1,265           2,833          4,098         (2,833)          1,265
Other Accruals and Current Liabilities          19,656            (349)        19,307              -          19,307
Other Assets                                    (2,904)             (2)        (2,906)             -          (2,906)
Other Liabilities                                  (23)            (52)           (75)          (402)           (477)
                                          -------------  --------------  -------------  -------------   -------------

Net Cash Provided by
Operating Activities                           163,965          29,510        193,475              -         193,475
                                          -------------  --------------  -------------  -------------   -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                           (46,302)        (31,419)       (77,721)             -         (77,721)
Net Proceeds from Sale of
Oil & Gas Properties                             2,200           4,962          7,162              -           7,162
Change in Notes
Receivable - Intercompany                      (72,100)              -        (72,100)             -         (72,100)
Other                                           (1,083)              -         (1,083)             -          (1,083)
                                          -------------  --------------  -------------  -------------   -------------

Net Cash Used in Investing
Activities                                    (117,285)        (26,457)      (143,742)             -        (143,742)
                                          -------------  --------------  -------------  -------------   -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable - Intercompany         (32,828)              -        (32,828)             -         (32,828)
Dividends Paid on Common Stock                 (11,892)              -        (11,892)             -         (11,892)
                                          -------------  --------------  -------------  -------------   -------------

Net Cash Used in Financing
Activities                                     (44,720)              -        (44,720)             -         (44,720)
                                          -------------  --------------  -------------  -------------   -------------


Effect of Exchange Rates on Cash                     -           1,203          1,203              -           1,203
                                          -------------  --------------  -------------  -------------   -------------

Net Increase in Cash
and Temporary Cash Investments                   1,960           4,256          6,216              -           6,216

Cash and Temporary Cash Investments
at Beginning of Period                             629           9,578         10,207              -          10,207
                                          -------------  --------------  -------------  -------------   -------------

Cash and Temporary Cash Investments
at End of Period                               $ 2,589        $ 13,834       $ 16,423            $ -        $ 16,423
                                          =============  ==============  =============  =============   =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                                SENECA ENERGY CANADA, INC.
                                               CONSOLIDATING BALANCE SHEET
                                                  AT SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)


                                                                                                              Seneca Energy
                                                  Seneca Energy                 Total Before                  Canada, Inc.
                                      NSULC1      Canada, Inc.      NSULC2      Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------

ASSETS

PROPERTY, PLANT & EQUIPMENT                 $ -      $ 341,143            $ -      $ 341,143            $ -      $ 341,143
Less: Accumulated  DD&A                       -        198,282              -        198,282              -        198,282
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                              -        142,861              -        142,861              -        142,861
                                   -------------  -------------  -------------  -------------  -------------  -------------
CURRENT ASSETS:
Cash and Temporary Cash Investments           -         13,834              -         13,834              -         13,834
Allowance for Uncollectible Accounts          -              -              -              -              -              -
Notes Receivable - Intercompany               -              -              -              -              -              -
Accounts Receivable                           -          6,142              -          6,142              -          6,142
Accounts Receivable - Intercompany            -              -              -              -              -              -
Dividends Receivable                          -              -              -              -              -              -
Materials and Supplies                        -            640              -            640              -            640
Fair Value of Derivative Financial Instru.    -              -              -              -              -              -
Prepayments                                   -            168              -            168              -            168
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                              -         20,784              -         20,784              -         20,784
                                   -------------  -------------  -------------  -------------  -------------  -------------
OTHER ASSETS:
Investment in Associated Companies      108,741              -              -        108,741       (108,741)             -
Deferred Charges                              -            182              -            182              -            182
Notes Receivable - Intercompany               -              -              -              -              -              -
Other Assets                                  -              -              -              -              -              -
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                        108,741            182              -        108,923       (108,741)           182
                                   -------------  -------------  -------------  -------------  -------------  -------------
TOTAL ASSETS                          $ 108,741      $ 163,827            $ -      $ 272,568     $ (108,741)     $ 163,827
                                   =============  =============  =============  =============  =============  =============

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                                  -              -              -              -              -              -
Paid - in - Capital                     109,667         49,397          1,409        160,473        (49,397)       111,076
Earnings Reinvested in the Business    (194,710)        47,906         (2,193)      (148,997)       (19,051)      (168,048)
                                   -------------  -------------  -------------  -------------  -------------  -------------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income                    (85,043)        97,303           (784)        11,476        (68,448)       (56,972)
Accumulated Other
Comprehensive Income (Loss)              44,001         11,438            558         55,997        (40,293)        15,704
                                   -------------  -------------  -------------  -------------  -------------  -------------
Total Comprehen. Shareholders' Equity   (41,042)       108,741           (226)        67,473       (108,741)       (41,268)


Notes Payable-Intercompany              144,907              -          1,890        146,797              -        146,797
                                   -------------  -------------  -------------  -------------  -------------  -------------

Total Capitalization                    103,865        108,741          1,664        214,270       (108,741)       105,529
                                   -------------  -------------  -------------  -------------  -------------  -------------

CURRENT AND ACCRUED LIABILITIES:
Notes Payable to Banks and
Commercial Paper                              -              -              -              -              -              -
Accounts Payable                             (1)        11,521             (2)        11,518              -         11,518
Notes Payable - Intercompany                  -              -              -              -              -              -
Accounts Payable - Intercompany           3,089         27,777         (1,482)        29,384              -         29,384
Dividends Payable - Intercompany              -              -              -              -              -              -
Fair Value of Derivative Financial Instru.    -              -              -              -              -              -
Other Accruals and Current
Liabilities                                   -             23              -             23              -             23
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                          3,088         39,321         (1,484)        40,925              -         40,925
                                   -------------  -------------  -------------  -------------  -------------  -------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes         1,788         12,799           (180)        14,407              -         14,407
Pension Liability                             -              -              -              -              -              -
Asset Retirement Obligation                   -          2,966              -          2,966              -          2,966
Other Deferred Credits                        -              -              -              -              -              -
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                          1,788         15,765           (180)        17,373              -         17,373
                                   -------------  -------------  -------------  -------------  -------------  -------------

TOTAL CAPITALIZATION & LIABILITIES    $ 108,741      $ 163,827            $ -      $ 272,568     $ (108,741)     $ 163,827
                                   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                                SENECA ENERGY CANADA, INC.
                                            CONSOLIDATING STATEMENT OF INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                              Seneca Energy
                                                  Seneca Energy                 Total Before                  Canada, Inc.
                                      NSULC1      Canada, Inc.      NSULC2      Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------

OPERATING REVENUE:                         $ 57       $ 40,576            $ -       $ 40,633            $ -       $ 40,633
                                   -------------  -------------  -------------  -------------  -------------  -------------

OPERATING EXPENSE:
Purchased Gas                                 -              -              -              -              -              -
Operation and Maintenance                     2         11,408              2         11,412              -         11,412
Property, Franchise & Other Taxes             -            600              -            600              -            600
Depreciation, Depletion and
Amortization                                  -         15,105              -         15,105              -         15,105
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                              2         27,113              2         27,117              -         27,117
Gain (Loss) on Sale of Oil & Gas
Producing Properties                      6,580         (2,022)            87          4,645              -          4,645
                                   -------------  -------------  -------------  -------------  -------------  -------------

Operating Income (Loss)                   6,635         11,441             85         18,161              -         18,161
                                   -------------  -------------  -------------  -------------  -------------  -------------

OTHER INCOME (EXPENSE):
Unremitted Earnings/(Loss) of
Subsidiary                                7,522              -              -          7,522         (7,522)             -
Interest - Intercompany                  (2,184)             -            (28)        (2,212)             -         (2,212)
Other Interest                                -           (409)             -           (409)             -           (409)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Income (Loss) Before
Income Taxes                             11,973         11,032             57         23,062         (7,522)        15,540
                                   -------------  -------------  -------------  -------------  -------------  -------------

Income Taxes                              1,474          3,510              3          4,987              -          4,987
                                   -------------  -------------  -------------  -------------  -------------  -------------

Net Income (Loss) Available
for Common Stock                       $ 10,499        $ 7,522           $ 54       $ 18,075       $ (7,522)      $ 10,553
                                   =============  =============  =============  =============  =============  =============


See Notes to  Consolidated  Financial  Statements  included  in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2004,
incorporated herein by reference.




                                                SENECA ENERGY CANADA, INC.
                              CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)


                                                                                                              Seneca Energy
                                                  Seneca Energy                 Total Before                  Canada, Inc.
EARNINGS REINVESTED IN THE BUSINESS   NSULC1      Canada, Inc.      NSULC2      Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Balance at Beginning of Year         $ (205,209)      $ 40,384       $ (2,247)    $ (167,072)     $ (11,529)    $ (178,601)


Net Income (Loss) Available
for Common Stock                         10,499          7,522             54         18,075         (7,522)        10,553


Dividends on Common Stock                     -              -              -              -              -              -
                                   -------------  -------------  -------------  -------------  -------------  -------------


Balance at End of Year               $ (194,710)      $ 47,906       $ (2,193)    $ (148,997)     $ (19,051)    $ (168,048)
                                   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.





                                                SENECA ENERGY CANADA, INC.
                                     CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)


                                                                                                              Seneca Energy
                                                  Seneca Energy                 Total Before                  Canada, Inc.
                                      NSULC1      Canada, Inc.      NSULC2      Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Net Income (Loss) Available
for Common Stock                       $ 10,499        $ 7,522           $ 54       $ 18,075       $ (7,522)      $ 10,553
                                   -------------  -------------  -------------  -------------  -------------  -------------

Other Comprehensive Income
(Loss):
Foreign Currency
Translation Adjustment                   16,074          5,750             64         21,888        (14,411)         7,477
                                   -------------  -------------  -------------  -------------  -------------  -------------

Other Comprehensive Income               16,074          5,750             64         21,888        (14,411)         7,477
                                   -------------  -------------  -------------  -------------  -------------  -------------

Comprehensive Income                   $ 26,573       $ 13,272          $ 118       $ 39,963      $ (21,933)      $ 18,030
                                   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                                SENECA ENERGY CANADA, INC.
                                          CONSOLIDATING STATEMENT OF CASH FLOWS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                               Seneca Energy
                                                      Seneca Energy               Total Before                 Canada, Inc.
                                         NSULC1       Canada, Inc.    NSULC2      Eliminations  Eliminations   (Consolidated)
                                       ------------   ------------  ------------  ------------  -------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                         $ 10,499        $ 7,522          $ 54      $ 18,075       $ (7,522)     $ 10,553
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted (Earnings)/Loss of Subsidiary    (7,522)             -             -        (7,522)         7,522             -
(Gain) Loss on Sale of Oil
& Gas Producing Properties                  (6,580)         2,022           (87)       (4,645)             -        (4,645)
Depreciation, Depletion &
Amortization                                     -         15,105             -        15,105              -        15,105
Deferred Income Taxes                        1,474          3,311             -         4,785              -         4,785
Other                                            -           (732)            -          (732)             -          (732)

Change in:
Receivables and Unbilled Utility
Revenue                                          -         (1,374)        1,763           389              -           389
Accounts Receivable - Intercompany               -              -             -             -              -             -
Materials and Supplies                           -            146             -           146              -           146
Prepayments                                      -            487             -           487              -           487
Accounts Payable                                (1)           995            (2)          992              -           992
Accounts Payable - Intercompany              2,130          2,431        (1,728)        2,833              -         2,833
Other Accruals and Current Liabilities           -           (349)            -          (349)             -          (349)
Other Assets                                     -             (2)            -            (2)             -            (2)
Other Liabilities                                -            (52)            -           (52)             -           (52)
                                       ------------   ------------  ------------  ------------  -------------  ------------

Net Cash Provided by
Operating Activities                             -         29,510             -        29,510              -        29,510
                                       ------------   ------------  ------------  ------------  -------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                             -        (31,419)            -       (31,419)             -       (31,419)
Net Proceeds from Sale of
Oil & Gas Properties                             -          4,962             -         4,962              -         4,962
Change in Notes
Receivable - Intercompany                        -              -             -             -              -             -
Other                                            -              -             -             -              -             -
                                       ------------   ------------  ------------  ------------  -------------  ------------

Net Cash Used in Investing
Activities                                       -        (26,457)            -       (26,457)             -       (26,457)
                                       ------------   ------------  ------------  ------------  -------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Net Cash Used in Financing
Activities                                       -              -             -             -              -             -
                                       ------------   ------------  ------------  ------------  -------------  ------------


Effect of Exchange Rates on Cash                 -          1,203             -         1,203              -         1,203
                                       ------------   ------------  ------------  ------------  -------------  ------------

Net Increase in Cash
and Temporary Cash Investments                   -          4,256             -         4,256              -         4,256

Cash and Temporary Cash Investments
at Beginning of Period                           -          9,578             -         9,578              -         9,578
                                       ------------   ------------  ------------  ------------  -------------  ------------

Cash and Temporary Cash Investments
at End of Period                               $ -       $ 13,834           $ -      $ 13,834            $ -      $ 13,834
                                       ============   ============  ============  ============  =============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                             HIGHLAND FOREST RESOURCES, INC.
                                               CONSOLIDATING BALANCE SHEET
                                                  AT SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                                  Highland
                                Highland                                                                           Forest
                                 Forest        Empire      St. Clair   Empire State  Total Before               Resources, Inc.
                              Resources, Inc.   LLC           LLC        Pipeline    Eliminations Eliminations  (Consolidated)
                              -------------- -----------  ------------ ------------  -----------  ------------  --------------

ASSETS

PROPERTY, PLANT & EQUIPMENT       $ 92,949     $ 10,982           $ -    $ 210,029    $ 313,960           $ -    $ 313,960
Less: Accumulated  DD&A             22,348      (71,067)            -       89,590       40,871             -       40,871
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
                                    70,601       82,049             -      120,439      273,089             -      273,089
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
CURRENT ASSETS:
Cash and Temporary Cash Investments    108          679           252        1,089        2,128             -        2,128
Accounts Receivable                  2,630            -             -        2,591        5,221             -        5,221
Accounts Receivable - Intercompany      75          211             1          200          487          (210)         277
Dividends Receivable                   800          400           400            -        1,600        (1,600)           -
Materials and Supplies              25,340            -             -           56       25,396             -       25,396
Prepayments                            583            -             -        2,621        3,204             -        3,204
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
                                    29,536        1,290           653        6,557       38,036        (1,810)      36,226
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
OTHER ASSETS:
Recoverable Future Taxes                 -            -             -        3,833        3,833             -        3,833
Unamortized Debt Expense                 -            -             -          281          281             -          281
Other Regulatory Assets                  -            -             -        2,823        2,823             -        2,823
Investment in Associated Company   180,283       42,413        42,413            -      265,109      (265,109)           -
Deferred Charges                         -            -             -          415          415             -          415
Goodwill                                 -        5,476             -            -        5,476             -        5,476
Intangible Assets                        -        6,799             -            -        6,799             -        6,799
Other Assets                         1,134            -             -            -        1,134             -        1,134
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
                                   181,417       54,688        42,413        7,352      285,870      (265,109)      20,761
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
TOTAL ASSETS                     $ 281,554    $ 138,027      $ 43,066    $ 134,348    $ 596,995    $ (266,919)   $ 330,076
                               ============  ===========  ============ ============  ===========  ============  ===========

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                             4      142,165        47,041            -      189,210      (189,206)           4
Paid - in - Capital                 22,039            -             -       38,220       60,259       (38,220)      22,039
Earnings Reinvest. in the Business 115,889       (5,295)       (5,123)      48,811      154,282       (38,392)     115,890
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income               137,932      136,870        41,918       87,031      403,751      (265,818)     137,933
Accumulated Other
Comprehensive Income (Loss)          1,495          748           748       (2,204)         787           708        1,495
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
Total Comprehensive
 Shareholders' Equity              139,427      137,618        42,666       84,827      404,538      (265,110)     139,428

Long-Term Debt, net of
 Current Portion                         -            -             -       32,100       32,100             -       32,100
Notes Payable-Intercompany          60,000            -             -            -       60,000             -       60,000
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

Total Capitalization               199,427      137,618        42,666      116,927      496,638      (265,110)     231,528
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

CURRENT AND ACCRUED LIABILITIES:
Accounts Payable                    11,338            -             -          144       11,482             -       11,482
Notes Payable - Intercompany        11,600            -             -            -       11,600             -       11,600
Current Portion of Long-Term Debt        -            -             -        9,333        9,333             -        9,333
Accounts Payable - Intercompany      1,786            -             -          900        2,686          (209)       2,477
Dividends Payable - Intercompany     1,200          400           400          800        2,800        (1,600)       1,200
Fair Value of Derivative
 Financial Instruments                   -            -             -        2,204        2,204             -        2,204
Other Accruals and Current
Liabilities                          2,328            9             -          195        2,532             -        2,532
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
                                    28,252          409           400       13,576       42,637        (1,809)      40,828
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes   53,350            -             -        3,833       57,183             -       57,183
Pension Liability                        1            -             -            -            1             -            1
Other Deferred Credits                 524            -             -           12          536             -          536
                               -----------   -----------  ------------ ------------  -----------  ------------  -----------
                                    53,875            -             -        3,845       57,720             -       57,720
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

TOTAL CAPITALILZATION
 & LIABILITIES                   $ 281,554    $ 138,027      $ 43,066    $ 134,348    $ 596,995    $ (266,919)   $ 330,076
                               ============  ===========  ============ ============  ===========  ============  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                             HIGHLAND FOREST RESOURCES, INC.
                                            CONSOLIDATING STATEMENT OF INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)
                                                                                                                  Highland
                                Highland                                                                           Forest
                                 Forest        Empire      St. Clair   Empire State  Total Before               Resources, Inc.
                              Resources, Inc.   LLC           LLC        Pipeline    Eliminations Eliminations  (Consolidated)
                              -------------- -----------  ------------ ------------  -----------  ------------  --------------

OPERATING REVENUE:                $ 55,596     $ (1,069)          $ -     $ 34,492     $ 89,019           $ -     $ 89,019
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

OPERATING EXPENSE:
Operation and Maintenance           42,596            2            (1)       4,712       47,309             -       47,309
Property, Franchise & Other Taxes      539            -             -        4,826        5,365             -        5,365
Depreciation, Depletion and
Amortization                         5,946        2,200             -        9,254       17,400             -       17,400
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
                                    49,081        2,202            (1)      18,792       70,074             -       70,074
Loss on Sale of Timber
 Properties                         (1,252)           -             -            -       (1,252)            -       (1,252)
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------
                                                                                                            -
Operating Income (Loss)              5,263       (3,271)            1       15,700       17,693             -       17,693
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

OTHER INCOME (EXPENSE):
Unremitted Earnings/(Loss) of
Subsidiary                          10,216        6,345         6,345            -       22,906       (22,906)           -
Other Income                           270           14             4           33          321             -          321
Interest on Long-Term Debt               -          389           389       (3,098)      (2,320)            -       (2,320)
Interest - Intercompany             (3,864)           -             -            -       (3,864)            -       (3,864)
Other Interest                         (91)           -             -           56          (35)            -          (35)
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------


Income (Loss) Before
Income Taxes and
Minority Interest in
Foreign Subsidiary                  11,794        3,477         6,739       12,691       34,701       (22,906)      11,795
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

Income Taxes                         4,036            -             -            -        4,036             -        4,036

Net Income (Loss) Available
for Common Stock                   $ 7,758      $ 3,477       $ 6,739     $ 12,691     $ 30,665     $ (22,906)     $ 7,759
                               ============  ===========  ============ ============  ===========  ============  ===========


See Notes to  Consolidated  Financial  Statements  included  in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2004,
incorporated herein by reference.




                                             HIGHLAND FOREST RESOURCES, INC.
                              CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                                  Highland
                                Highland                                                                           Forest
EARNINGS REINVESTED              Forest        Empire      St. Clair   Empire State  Total Before               Resources, Inc.
 IN THE BUSINESS              Resources, Inc.   LLC           LLC        Pipeline    Eliminations Eliminations  (Consolidated)
                              -------------- -----------  ------------ ------------  -----------  ------------  --------------

Balance at Beginning of Year     $ 111,931       $ (368)     $ (4,257)    $ 50,605    $ 157,911     $ (45,980)   $ 111,931

Net Income (Loss) Available
for Common Stock                     7,758        3,477         6,739       12,691       30,665       (22,906)       7,759

Dividends on Common Stock and
Joint Venture Distributions         (3,800)      (8,404)       (7,605)     (14,485)     (34,294)       30,494       (3,800)
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------


Balance at End of Year           $ 115,889     $ (5,295)     $ (5,123)    $ 48,811    $ 154,282     $ (38,392)   $ 115,890
                               ============  ===========  ============ ============  ===========  ============  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                             HIGHLAND FOREST RESOURCES, INC.
                                     CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                                  Highland
                                Highland                                                                           Forest
                                 Forest        Empire      St. Clair   Empire State  Total Before               Resources, Inc.
                              Resources, Inc.   LLC           LLC        Pipeline    Eliminations Eliminations  (Consolidated)
                              -------------- -----------  ------------ ------------  ------------ ------------  --------------

Net Income (Loss) Available
for Common Stock                   $ 7,758      $ 3,477       $ 6,739     $ 12,691     $ 30,665     $ (22,906)     $ 7,759
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

Other Comprehensive Income
(Loss):
Unrealized Gain (Loss) on Derivative
Financial Instruments Arising
During the Period                     (693)          29            30           58         (576)         (117)        (693)
Reclassification Adjustment for Realized
(Gain) Loss on Derivative Financial
Instruments in Net Income            1,964          606           606        1,991        5,167        (3,203)       1,964
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

Other Comprehensive Income (Loss)    1,271          635           636        2,049        4,591        (3,320)       1,271
                               ------------  -----------  ------------ ------------  -----------  ------------  -----------

Comprehensive Income (Loss)        $ 9,029      $ 4,112       $ 7,375     $ 14,740     $ 35,256     $ (26,226)     $ 9,030
                               ============  ===========  ============ ============  ===========  ============  ===========



See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                              HIGHLAND FOREST RESOURCES, INC.
                                           CONSOLIDATING STATEMENT OF CASH FLOWS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)
                                                                                                                   Highland
                                     Highland                                                                       Forest
                                      Forest       Empire    St. Clair    Empire State Total Before              Resources, Inc.
                                  Resources, Inc.   LLC         LLC         Pipeline   Eliminations Eliminations (Consolidated)
                                  --------------  ---------  -----------  -----------  -----------  ------------ --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                      $ 7,758       3,477        6,739     $ 12,691     $ 30,665    $ (22,906)     $ 7,759
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Earnings of Subsidiaries, Net of
Cash Distributions                       5,294         647          647            -        6,588       (6,588)           -
Loss on Sale of Timber Properties        1,252           -            -            -        1,252            -        1,252
Depreciation, Depletion &
Amortization                             5,946       2,200            -        9,254       17,400            -       17,400
Deferred Income Taxes                   (3,114)          -            -            -       (3,114)           -       (3,114)
Other                                     (158)      1,069            -          262        1,173                     1,173

Change in:
Receivables and Unbilled Utility
Revenue                                   (116)          -            -          (39)        (155)           -         (155)
Accounts Receivable - Intercompany          57        (211)          (1)         207           52          210          262
Materials and Supplies                 (11,067)          -            -           17      (11,050)           -      (11,050)
Prepayments                               (128)          -            -        1,049          921            -          921
Accounts Payable                         7,891           -            -         (598)       7,293            -        7,293
Accounts Payable - Intercompany           (787)          -            -          819           32         (210)        (178)
Other Accruals and Current Liabilities     259        (381)        (389)        (120)        (631)           -         (631)
Other Assets                                 -           -            -         (760)        (760)           -         (760)
Other Liabilities                         (129)         (2)           -         (774)        (905)           -         (905)
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------

Net Cash Provided by
Operating Activities                    12,958       6,799        6,996       22,008       48,761      (29,494)      19,267
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                    (2,756)          -            -         (171)      (2,927)           -       (2,927)
Other                                      232           -            -            -          232            -          232
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------

Net Cash Used in Investing
Activities                              (2,524)          -            -         (171)      (2,695)           -       (2,695)
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable - Intercompany  (7,200)          -            -            -       (7,200)           -       (7,200)
Reduction of Long-Term Debt                  -           -            -       (9,333)      (9,333)           -       (9,333)
Dividends and Distributions             (3,300)     (8,154)      (7,355)     (13,985)     (32,794)      29,494       (3,300)
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------

Net Cash Used in Financing
Activities                             (10,500)     (8,154)      (7,355)     (23,318)     (49,327)      29,494      (19,833)
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------


Effect of Exchange Rates on Cash             -           -            -            -            -            -            -
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------

Net Increase (Decrease) in Cash
and Temporary Cash Investments             (66)     (1,355)        (359)      (1,481)      (3,261)           -       (3,261)

Cash and Temporary Cash Investments
at Beginning of Period                     174       2,034          611        2,570        5,389            -        5,389
                                    ----------- -----------  -----------  -----------  -----------  -----------  -----------

Cash and Temporary Cash Investments
at End of Period                         $ 108       $ 679        $ 252      $ 1,089      $ 2,128          $ -      $ 2,128
                                    =========== ===========  ===========  ===========  ===========  ===========  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                                    HORIZON LFG, INC.
                                               CONSOLIDATING BALANCE SHEET
                                                  AT SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                                Horizon
                                     Horizon          Toro           Toro                                         LFG,
                                       LFG,        Partners,     Partners, LP   Total Before                      Inc.
                                       Inc.           LLC        (Consolidated) Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------
ASSETS

PROPERTY, PLANT & EQUIPMENT                 $ -            $ -       $ 15,180       $ 15,180            $ -       $ 15,180
Less: Accumulated  DD&A                       -              -            902            902              -            902
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                              -              -         14,278         14,278              -         14,278
                                   -------------  -------------  -------------  -------------  -------------  -------------
CURRENT ASSETS:
Cash and Temporary Cash Investments         257            231          1,391          1,879              -          1,879
Notes Receivable - Intercompany          43,000              -              -         43,000        (43,000)             -
Accounts Receivable                           -              -          1,940          1,940              -          1,940
Accounts Receivable - Intercompany           62              -            543            605            (62)           543
Prepayments                                   -              -             76             76              -             76
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                         43,319            231          3,950         47,500        (43,062)         4,438
                                   -------------  -------------  -------------  -------------  -------------  -------------
OTHER ASSETS:
Investment in Associated Companies          146         42,552              -         42,698        (42,698)             -
Intangible Assets                             -              -         30,024         30,024              -         30,024
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                            146         42,552         30,024         72,722        (42,698)        30,024
                                   -------------  -------------  -------------  -------------  -------------  -------------
TOTAL ASSETS                           $ 43,465       $ 42,783       $ 48,252      $ 134,500      $ (85,760)      $ 48,740
                                   =============  =============  =============  =============  =============  =============

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                                  1              -              -              1              -              1
Paid - in - Capital                       6,800              -         47,347         54,147        (47,347)         6,800
Earnings Reinvested in the Business      (3,979)         3,771           (273)          (481)        (3,498)        (3,979)
                                   -------------  -------------  -------------  -------------  -------------  -------------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income                      2,822          3,771         47,074         53,667        (50,845)         2,822
Accumulated Other
Comprehensive Income (Loss)              (4,094)        (4,053)        (4,094)       (12,241)         8,147         (4,094)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Total Capitalization                     (1,272)          (282)        42,980         41,426        (42,698)        (1,272)
                                   -------------  -------------  -------------  -------------  -------------  -------------

CURRENT AND ACCRUED LIABILITIES:
Accounts Payable                              -              -          1,243          1,243              3          1,246
Notes Payable - Intercompany             43,500         43,000              -         86,500        (43,000)        43,500
Accounts Payable - Intercompany             370             65             22            457            (65)           392
Fair Value of Derivative Financial Instruments-              -          6,761          6,761              -          6,761
Other Accruals and Current
Liabilities                              (1,028)             -              -         (1,028)             -         (1,028)
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                         42,842         43,065          8,026         93,933        (43,062)        50,871
                                   -------------  -------------  -------------  -------------  -------------  -------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes         1,894              -         (2,754)          (860)             -           (860)
Other Deferred Credits                        1              -              -              1              -              1
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                          1,895              -         (2,754)          (859)             -           (859)
                                   -------------  -------------  -------------  -------------  -------------  -------------

TOTAL CAPITALIZATION & LIABILITIES     $ 43,465       $ 42,783       $ 48,252      $ 134,500      $ (85,760)      $ 48,740
                                   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                                    HORIZON LFG, INC.
                                            CONSOLIDATING STATEMENT OF INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)
                                                                                                                 Horizon
                                     Horizon          Toro           Toro                                          LFG,
                                       LFG,        Partners,     Partners, LP   Total Before                       Inc.
                                       Inc.           LLC        (Consolidated) Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------

OPERATING REVENUE:                         $ -            $ -       $ 13,237       $ 13,237            $ -       $ 13,237
                                   -------------  -------------  -------------  -------------  -------------  -------------

OPERATING EXPENSE:
Purchased Gas                                 -              -          5,992          5,992              -          5,992
Operation and Maintenance                   324              6          2,541          2,871              -          2,871
Property, Franchise & Other Taxes             3              -             47             50              -             50
Depreciation, Depletion and
Amortization                                  -              -          1,051          1,051              -          1,051
                                   -------------  -------------  -------------  -------------  -------------  -------------
                                            327              6          9,631          9,964              -          9,964
                                   -------------  -------------  -------------  -------------  -------------  -------------
Operating Income (Loss)                    (327)            (6)         3,606          3,273              -          3,273
                                   -------------  -------------  -------------  -------------  -------------  -------------

OTHER INCOME (EXPENSE):
Unremitted Earnings/(Loss) of
Subsidiaries                              3,040          3,598              -          6,638         (6,638)             -
Interest - Intercompany                     589              -              -            589           (589)             -
Other Income                                  -              -             29             29              -             29
Interest - Intercompany                    (595)          (589)             -         (1,184)           589           (595)
Other Interest                              (58)             -              -            (58)             -            (58)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Income (Loss) Before
Income Taxes and
Minority Interest in
Foreign Subsidiary                        2,649          3,003          3,635          9,287         (6,638)         2,649
                                   -------------  -------------  -------------  -------------  -------------  -------------

Income Taxes                                837              -              -            837              -            837
                                   -------------  -------------  -------------  -------------  -------------  -------------

Net Income (Loss) Available
for Common Stock                        $ 1,812        $ 3,003        $ 3,635        $ 8,450       $ (6,638)       $ 1,812
                                   =============  =============  =============  =============  =============  =============


See Notes to  Consolidated  Financial  Statements  included  in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2004,
incorporated herein by reference.




                                                    HORIZON LFG, INC.
                              CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                                 Horizon
                                     Horizon          Toro           Toro                                          LFG,
                                       LFG,        Partners,     Partners, LP   Total Before                       Inc.
EARNINGS REINVESTED IN THE BUSINESS    Inc.           LLC       (Consolidated)  Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Balance at Beginning of Year           $ (5,791)         $ 768        $ 1,118       $ (3,905)      $ (1,886)      $ (5,791)


Net Income (Loss) Available
for Common Stock                          1,812          3,003          3,635          8,450         (6,638)         1,812


Distributions                                 -              -         (5,026)        (5,026)         5,026              -
                                   -------------  -------------  -------------  -------------  -------------  -------------


Balance at End of Year                 $ (3,979)       $ 3,771         $ (273)        $ (481)      $ (3,498)      $ (3,979)
                                   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                                    HORIZON LFG, INC.
                                     CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                                                                                 Horizon
                                     Horizon          Toro           Toro                                          LFG,
                                       LFG,        Partners,     Partners, LP   Total Before                       Inc.
                                       Inc.           LLC       (Consolidated)  Eliminations   Eliminations   (Consolidated)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Net Income (Loss) Available
for Common Stock                        $ 1,812        $ 3,003        $ 3,635        $ 8,450       $ (6,638)       $ 1,812
                                   -------------  -------------  -------------  -------------  -------------  -------------

Other Comprehensive Income,
Before Tax:
Unrealized Loss on Derivative
Financial Instruments Arising
During the Period                        (8,111)             -         (8,111)       (16,222)         8,111         (8,111)
Reclassification Adjustment for Realized
Gain on Derivative Financial
Instruments in Net Income                   (73)             -            (73)          (146)            73            (73)
                                   -------------  -------------  -------------  -------------  -------------  -------------
Other Comprehensive Loss,
 Before Tax                              (8,184)             -         (8,184)       (16,368)         8,184         (8,184)
Income Tax Benefit Related to Unrealized
Loss on Derivative Financial
Instruments Arising During the Period    (2,918)             -         (2,918)        (5,836)         2,918         (2,918)
Reclassification Adjustment for Income
Tax Benefit on Derivative Financial
Instruments Realized In Net Income          164              -            164            328           (164)           164
                                   -------------  -------------  -------------  -------------  -------------  -------------

Income Taxes - Net                       (2,754)             -         (2,754)        (5,508)         2,754         (2,754)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Other Comprehensive Income               (5,430)             -         (5,430)       (10,860)         5,430         (5,430)
                                   -------------  -------------  -------------  -------------  -------------  -------------

Comprehensive Income (Loss)            $ (3,618)       $ 3,003       $ (1,795)      $ (2,410)      $ (1,208)      $ (3,618)
                                   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.





                                                    HORIZON LFG, INC.
                                          CONSOLIDATING STATEMENT OF CASH FLOWS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)
                                                                                                                   Horizon
                                         Horizon         Toro          Toro                                         LFG,
                                          LFG,         Partners,    Partners, LP  Total Before                      Inc.
                                          Inc.            LLC      (Consolidated) Eliminations  Eliminations   (Consolidated)
                                       ------------   ------------  ------------  ------------  -------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                          $ 1,812        $ 3,003       $ 3,635       $ 8,450       $ (6,638)      $ 1,812
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted Earnings of Subsidiaries,
Net of Cash Distributions                   (2,985)         1,847             -        (1,138)         1,138             -
Depreciation, Depletion &
Amortization                                     -              -         1,051         1,051              -         1,051
Deferred Income Taxes                        1,733              -             -         1,733              -         1,733
Other                                            -              -         1,498         1,498              -         1,498

Change in:
Receivables and Unbilled Utility
Revenue                                          2            208        (1,110)         (900)             -          (900)
Accounts Receivable - Intercompany             (15)             -          (364)         (379)            15          (364)
Prepayments                                      -              -           (76)          (76)             -           (76)
Accounts Payable                                 -              -         1,010         1,010              3         1,013
Accounts Payable - Intercompany                221             15            22           258            (18)          240
Other Accruals and Current Liabilities      (1,020)             -             -        (1,020)             -        (1,020)
Other Assets                                     -              -         1,155         1,155              -         1,155
Other Liabilities                                2              -        (2,275)       (2,273)             -        (2,273)
                                       ------------   ------------  ------------  ------------  -------------  ------------

Net Cash Provided by
Operating Activities                          (250)         5,073         4,546         9,369         (5,500)        3,869
                                       ------------   ------------  ------------  ------------  -------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                             -              -          (197)         (197)             -          (197)
Change in Notes Receivable-Intercompany      5,000              -             -         5,000         (5,000)            -
                                       ------------   ------------  ------------  ------------  -------------  ------------

Net Cash Provided by (Used in) Investing
Activities                                   5,000              -          (197)        4,803         (5,000)         (197)
                                       ------------   ------------  ------------  ------------  -------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable-Intercompany        (4,800)        (5,000)            -        (9,800)         5,000        (4,800)
Distributions Paid                               -              -        (5,500)       (5,500)         5,500             -
                                       ------------   ------------  ------------  ------------  -------------  ------------

Net Cash Used in Financing
Activities                                  (4,800)        (5,000)       (5,500)      (15,300)        10,500        (4,800)
                                       ------------   ------------  ------------  ------------  -------------  ------------


Effect of Exchange Rates on Cash                 -              -             -             -              -             -
                                       ------------   ------------  ------------  ------------  -------------  ------------

Net Increase (Decrease) in Cash
and Temporary Cash Investments                 (50)            73        (1,151)       (1,128)             -        (1,128)

Cash and Temporary Cash Investments
at Beginning of Period                         307            158         2,542         3,007              -         3,007
                                       ------------   ------------  ------------  ------------  -------------  ------------

Cash and Temporary Cash Investments
at End of Period                             $ 257          $ 231       $ 1,391       $ 1,879            $ -       $ 1,879
                                       ============   ============  ============  ============  =============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                                    TORO PARTNERS, LP.
                                               CONSOLIDATING BALANCE SHEET
                                                  AT SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)


                                                  Toro Energy    Toro Energy    Toro Energy    Toro Energy    Toro Energy     Toro Energy    Toro Energy    Toro Energy                                  Consolidated
                                       Toro       of Michigan, of Ohio-Statewide  of Ohio,     of Kentucky,   of Missouri,    of Maryland,   of Indiana, of Ohio-American, Total Before                      Toro
                                   Partners, LP       LLC            LLC            LLC            LLC            LLC             LLC            LLC            LLC        Eliminations   Eliminations   Partners, LP
                                   -------------  -----------  ---------------- -------------  -------------  -------------   -------------  ------------- --------------  -------------  -------------  -------------

ASSETS

PROPERTY, PLANT & EQUIPMENT                 $ 1        $ 1,915            $ -        $ 1,659        $ 1,888        $ 2,602         $ 2,128        $ 1,091        $ 3,896       $ 15,180            $ -       $ 15,180
Less: Accumulated  DD&A                       -            127              -            104            126            161             142             73            169            902              -            902
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
                                              1          1,788              -          1,555          1,762          2,441           1,986          1,018          3,727         14,278              -         14,278
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
CURRENT ASSETS:
Cash and Temporary Cash Investments      (1,139)           192             33            888            199            281             (73)           220            790          1,391              -          1,391
Accounts Receivable                           -             33             13            174            116            142             125            185          1,152          1,940              -          1,940
Accounts Receivable - Intercompany          543              -              -              -              -              -               -              -              -            543              -            543
Prepayments                                  16              -              -              -              -              -              60              -              -             76              -             76
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
                                           (580)           225             46          1,062            315            423             112            405          1,942          3,950              -          3,950
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
OTHER ASSETS:
Investment in Associated Companies       47,588              -              -              -              -              -               -              -              -         47,588        (47,588)             -
Intangible Assets                             -          2,443              -          4,770          2,013          3,542           2,168          4,185         10,903         30,024              -         30,024
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
                                         47,588          2,443              -          4,770          2,013          3,542           2,168          4,185         10,903         77,612        (47,588)        30,024
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
TOTAL ASSETS                           $ 47,009        $ 4,456           $ 46        $ 7,387        $ 4,090        $ 6,406         $ 4,266        $ 5,608       $ 16,572       $ 95,840      $ (47,588)      $ 48,252
                                   =============  =============  =============  =============  =============  =============   =============  =============  =============  =============  =============  =============

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                                  -              -              -              -              -              -               -              -              -              -              -              -
Paid - in - Capital                      47,347          4,448            340          6,861          4,040          6,286           4,314          5,582         15,476         94,694        (47,347)        47,347
Earnings Reinvested in the Business        (273)             -           (295)           480            (37)            87             (71)             -             77            (32)          (241)          (273)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income                     47,074          4,448             45          7,341          4,003          6,373           4,243          5,582         15,553         94,662        (47,588)        47,074
Accumulated Other
Comprehensive Income (Loss)              (4,094)             -              -              -              -              -               -              -              -         (4,094)             -         (4,094)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
Total Comprehen. Shareholders' Equity    42,980          4,448             45          7,341          4,003          6,373           4,243          5,582         15,553         90,568        (47,588)        42,980


Notes Payable-Intercompany                    -              -              -              -              -              -               -              -              -              -              -              -
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

Total Capitalization                     42,980          4,448             45          7,341          4,003          6,373           4,243          5,582         15,553         90,568        (47,588)        42,980
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

CURRENT AND ACCRUED LIABILITIES:
Accounts Payable                              -              8              1             46             87             33              23             26          1,019          1,243              -          1,243
Accounts Payable - Intercompany              22              -              -              -              -              -               -              -              -             22              -             22
Fair Value of Derivative
 Financial Instruments                    6,761              -              -              -              -              -               -              -              -          6,761              -          6,761
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
                                          6,783              8              1             46             87             33              23             26          1,019          8,026              -          8,026
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes        (2,754)             -              -              -              -              -               -              -              -         (2,754)             -         (2,754)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
                                         (2,754)             -              -              -              -              -               -              -              -         (2,754)             -         (2,754)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

TOTAL CAPITALIZATION & LIABILITIES     $ 47,009        $ 4,456           $ 46        $ 7,387        $ 4,090        $ 6,406         $ 4,266        $ 5,608       $ 16,572       $ 95,840      $ (47,588)      $ 48,252
                                   =============  =============  =============  =============  =============  =============   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                                    TORO PARTNERS, LP.
                                            CONSOLIDATING STATEMENT OF INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                  Toro Energy    Toro Energy    Toro Energy    Toro Energy    Toro Energy     Toro Energy    Toro Energy    Toro Energy                                  Consolidated
                                       Toro       of Michigan, of Ohio-Statewide of Ohio,     of Kentucky,   of Missouri,    of Maryland,   of Indiana,  of Ohio-American, Total Before                      Toro
                                   Partners, LP       LLC            LLC            LLC            LLC            LLC             LLC            LLC            LLC        Eliminations   Eliminations   Partners, LP
                                   -------------  ------------- --------------- -------------  -------------  -------------   -------------  ------------- --------------  -------------  -------------  -------------

OPERATING REVENUE:                         $ 73          $ 478          $ 132        $ 2,248          $ 937        $ 1,556           $ 659        $ 1,030        $ 6,124       $ 13,237            $ -       $ 13,237
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

OPERATING EXPENSE:
Purchased Gas                                 -            214              -            446            237            426             202            452          4,015          5,992              -          5,992
Operation and Maintenance                   384             33             64            328            300            351             277            173            631          2,541              -          2,541
Property, Franchise & Other Taxes             -              -              -              -              -              -              47              -              -             47              -             47
Depreciation, Depletion and
Amortization                                  -             96            334             83             94            121             106             55            162          1,051              -          1,051
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
                                            384            343            398            857            631            898             632            680          4,808          9,631              -          9,631
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
Operating Income (Loss)                    (311)           135           (266)         1,391            306            658              27            350          1,316          3,606              -          3,606
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

OTHER INCOME:
Unremitted Earnings/(Loss) of
Subsidiary                                3,932              -              -              -              -              -               -              -              -          3,932         (3,932)             -
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

Other                                        14              -              -              -              -              -               -              -             15             29              -             29
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
                                          3,946              -              -              -              -              -               -              -             15          3,961         (3,932)            29
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

Net Income (Loss) Available
for Common Stock                        $ 3,635          $ 135         $ (266)       $ 1,391          $ 306          $ 658            $ 27          $ 350        $ 1,331        $ 7,567       $ (3,932)       $ 3,635
                                   =============  =============  =============  =============  =============  =============   =============  =============  =============  =============  =============  =============


See Notes to  Consolidated  Financial  Statements  included  in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2004,
incorporated herein by reference.



                                                    TORO PARTNERS, LP.
                              CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)


                                                  Toro Energy    Toro Energy    Toro Energy    Toro Energy    Toro Energy     Toro Energy   Toro Energy    Toro Energy                                   Consolidated
EARNINGS REINVESTED IN                 Toro       of Michigan, of Ohio-Statewide  of Ohio,     of Kentucky,   of Missouri,    of Maryland,  of Indiana,  of Ohio-American, Total Before                      Toro
 THE BUSINESS                      Partners, LP       LLC            LLC            LLC            LLC            LLC             LLC           LLC            LLC         Eliminations   Eliminations   Partners, LP
                                   -------------  ------------- --------------- -------------  -------------  -------------   ------------- -------------  -------------   -------------  -------------  -------------

Balance at Beginning of Year            $ 1,118           $ 78           $ 53          $ 309           $ 63          $ 273            $ 19          $ 108            $ -        $ 2,021         $ (903)       $ 1,118


Net Income (Loss) Available
for Common Stock                          3,635            135           (266)         1,391            306            658              27            350          1,331          7,567         (3,932)         3,635


Distributions                            (5,026)          (213)           (82)        (1,220)          (406)          (844)           (117)          (458)        (1,254)        (9,620)         4,594         (5,026)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------


Balance at End of Year                   $ (273)           $ -         $ (295)         $ 480          $ (37)          $ 87           $ (71)           $ -           $ 77          $ (32)        $ (241)        $ (273)
                                   =============  =============  =============  =============  =============  =============   =============  =============  =============  =============  =============  =============



See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                                    TORO PARTNERS, LP.
                                     CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)


                                                  Toro Energy    Toro Energy    Toro Energy    Toro Energy    Toro Energy     Toro Energy    Toro Energy    Toro Energy                                   Consolidated
                                       Toro       of Michigan, of Ohio-Statewide  of Ohio,     of Kentucky,   of Missouri,    of Maryland,   of Indiana,  of Ohio-American, Total Before                      Toro
                                   Partners, LP       LLC            LLC            LLC            LLC            LLC             LLC            LLC            LLC         Eliminations   Eliminations   Partners, LP
                                   -------------  ------------- --------------- -------------  -------------  -------------   -------------  ------------- ---------------  -------------  -------------  -------------

Net Income (Loss) Available
for Common Stock                        $ 3,635          $ 135         $ (266)       $ 1,391          $ 306          $ 658            $ 27          $ 350        $ 1,331        $ 7,567       $ (3,932)       $ 3,635
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

Other Comprehensive Income,
Before Tax:
Unrealized Loss on Derivative
Financial Instruments Arising
During the Period                        (8,111)             -              -              -              -              -               -              -              -         (8,111)             -         (8,111)
Reclassification Adjustment for Realized
Gain on Derivative Financial
Instruments in Net Income                   (73)             -              -              -              -              -               -              -              -            (73)             -            (73)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------
Other Comprehensive Loss,
 Before Tax                              (8,184)             -              -              -              -              -               -              -              -         (8,184)             -         (8,184)
Income Tax Benefit Related to Unrealized
Loss on Derivative Financial
Instruments Arising During the Period    (2,918)             -              -              -              -              -               -              -              -         (2,918)             -         (2,918)
Reclassification Adjustment for Income
Tax Benefit on Derivative Financial
Instruments Realized In Net Income          164              -              -              -              -              -               -              -              -            164              -            164
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

Income Taxes - Net                       (2,754)             -              -              -              -              -               -              -              -         (2,754)             -         (2,754)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

Other Comprehensive Loss                 (5,430)             -              -              -              -              -               -              -              -         (5,430)             -         (5,430)
                                   -------------  -------------  -------------  -------------  -------------  -------------   -------------  -------------  -------------  -------------  -------------  -------------

Comprehensive Income (Loss)            $ (1,795)         $ 135         $ (266)       $ 1,391          $ 306          $ 658            $ 27          $ 350        $ 1,331        $ 2,137       $ (3,932)      $ (1,795)
                                   =============  =============  =============  =============  =============  =============   =============  =============  =============  =============  =============  =============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                                    TORO PARTNERS, LP.
                                          CONSOLIDATING STATEMENT OF CASH FLOWS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)

                                                     Toro Energy    Toro Energy    Toro Energy  Toro Energy    Toro Energy   Toro Energy   Toro Energy    Toro Energy                                  Consolidated
                                          Toro       of Michigan, of Ohio-Statewide  of,Ohio,   of Kentucky,   of Missouri,  of Maryland,  of Indiana,  of Ohio-American, Total Before                     Toro
                                       Partners, LP      LLC           LLC            LLC          LLC            LLC           LLC           LLC            LLC          Eliminations  Eliminations   Partners, LP
                                       ------------  ------------ ---------------  ------------ -------------  ------------  ------------  ------------- ---------------  ------------  -------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                          $ 3,635          $ 135        $ (266)      $ 1,391          $ 306         $ 658          $ 27          $ 350       $ 1,331       $ 7,567       $ (3,932)      $ 3,635
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted (Earnings) Loss of Subsidiaries  (3,932)             -             -             -              -             -             -              -             -        (3,932)         3,932             -
Depreciation, Depletion &
Amortization                                     -             96           334            83             94           121           106             55           162         1,051              -         1,051
Other                                            -            130             -           255            108           190           106            234           475         1,498              -         1,498

Change in:
Receivables and Unbilled Utility
Revenue                                          -             20             4           (43)            12           106           (47)           (10)       (1,152)       (1,110)             -        (1,110)
Accounts Receivable - Intercompany            (364)             -             -             -              -             -             -              -             -          (364)             -          (364)
Gas Stored Underground
Prepayments                                    (16)             -             -             -              -             -           (60)             -             -           (76)                         (76)
Accounts Payable                                 -            (14)           (1)           15             (4)          (15)           14            (11)        1,026         1,010              -         1,010
Accounts Payable - Intercompany                 22              -             -             -              -             -             -              -             -            22                           22
Other Accruals and Current Liabilities
Other Assets                                 1,155              -             -             -              -             -             -              -             -         1,155              -         1,155
Other Liabilities                           (2,275)             -             -             -              -             -             -              -             -        (2,275)             -        (2,275)
                                       ------------   ------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------

Net Cash Provided by (Used in)
Operating Activities                        (1,775)           367            71         1,701            516         1,060           146            618         1,842         4,546              -         4,546
                                       ------------   ------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                             -              -             -             -              -          (194)            -              -            (3)         (197)             -          (197)
                                       ------------   ------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------

Net Cash Used in Investing
Activities                                       -              -             -             -              -          (194)            -              -            (3)         (197)             -          (197)
                                       ------------   ------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions                                 (432)          (358)          (85)       (1,220)          (466)         (844)         (304)          (537)       (1,254)       (5,500)                      (5,500)
                                       ------------   ------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------

Net Cash Used in Financing
Activities                                    (432)          (358)          (85)       (1,220)          (466)         (844)         (304)          (537)       (1,254)       (5,500)             -        (5,500)
                                       ------------   ------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------

Net Increase (Decrease) in Cash
and Temporary Cash Investments              (2,207)             9           (14)          481             50            22          (158)            81           585        (1,151)             -        (1,151)

Cash and Temporary Cash Investments
at Beginning of Period                       1,068            183            47           407            149           259            85            139           205         2,542              -         2,542
                                       ------------   ------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------  ------------  -------------  ------------

Cash and Temporary Cash Investments
at End of Period                          $ (1,139)         $ 192          $ 33         $ 888          $ 199         $ 281         $ (73)         $ 220         $ 790       $ 1,391            $ -       $ 1,391
                                       ============   ============  ============  ============  =============  ============  ============  =============  ============  ============  =============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.


                          HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
                                     CONSOLIDATING BALANCE SHEET
                                        AT SEPTEMBER 30, 2004
                                        (THOUSANDS OF DOLLARS)

                                    Horizon       Horizon
                                    Energy         Energy                                  Consolidated
                                  Development,    Holdings     Total Before                Horizon and
                                     Inc.       (Consolidated) Eliminations  Eliminations  Subsidiaries
                                  ------------  -------------  ------------  ------------  ------------

ASSETS

PROPERTY, PLANT & EQUIPMENT              $ 57      $ 408,721     $ 408,778           $ -     $ 408,778
Less:  Accumulated DD&A                     8        180,865       180,873             -       180,873
                                  ------------  -------------  ------------  ------------  ------------
                                           49        227,856       227,905             -       227,905
                                  ------------  -------------  ------------  ------------  ------------
CURRENT ASSETS:
Cash and Temporary Cash Investments        25         28,332        28,357             -        28,357
Notes Receivable - Intercompany           300              -           300             -           300
Allowance for Uncollectible Accounts        -         (2,184)       (2,184)            -        (2,184)
Accounts Receivable - Intercompany        107             99           206          (149)           57
Accounts Receivable                       145          8,447         8,592             -         8,592
Materials and Supplies                      -          4,079         4,079             -         4,079
Prepayments                                96            626           722             -           722
                                  ------------  -------------  ------------  ------------  ------------
                                          673         39,399        40,072          (149)       39,923
                                  ------------  -------------  ------------  ------------  ------------
OTHER ASSETS:
Investment in Associated Companies    184,582              -       184,582      (184,582)            -
Other                                       -            284           284             -           284
Deferred Charges                            6              -             6             -             6
                                  ------------  -------------  ------------  ------------  ------------
                                      184,588            284       184,872      (184,582)          290
                                   ------------  -------------  ------------  ------------  ------------
TOTAL ASSETS                        $ 185,310      $ 267,539     $ 452,849    $ (184,731)    $ 268,118
                                  ============  =============  ============  ============  ============

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                              $ 5            $ 2           $ 7          $ (2)          $ 5
Paid - in - Capital                    38,246        116,756       155,002      (116,756)       38,246
Earnings Reinvested in the Business   (17,227)        31,369        14,142       (31,369)      (17,227)
Accumulated Other Comprehen. Income    35,811         36,455        72,266       (36,455)       35,811
                                  ------------  -------------  ------------  ------------  ------------
Total Common Stock Equity              56,835        184,582       241,417      (184,582)       56,835
                                  ------------  -------------  ------------  ------------  ------------
Long-Term Debt, Net of Current
Portion                                     -          4,927         4,927             -         4,927
Notes Payable - Intercompany           89,770              -        89,770             -        89,770
                                  ------------  -------------  ------------  ------------  ------------

Total Capitalization                  146,605        189,509       336,114      (184,582)      151,532
                                  ------------  -------------  ------------  ------------  ------------
Minority Interest in Foreign
Subsidiaries                                -         37,048        37,048             -        37,048
                                  ------------  -------------  ------------  ------------  ------------

CURRENT AND ACCRUED LIABILITIES:
Notes Payable - Intercompany           34,700              -        34,700             -        34,700
Current Portion of Long-Term Debt           -          4,927         4,927             -         4,927
Accounts Payable                          134         13,052        13,186             -        13,186
Accounts Payable - Intercompany         3,664             50         3,714          (149)        3,565
Other Accruals and Current
Liabilities                             1,047          1,492         2,539             -         2,539
                                  ------------  -------------  ------------  ------------  ------------
                                       39,545         19,521        59,066          (149)       58,917
                                  ------------  -------------  ------------  ------------  ------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes      (3,280)        20,806        17,526             -        17,526
Other Deferred Credits                  2,440            655         3,095             -         3,095
                                  ------------  -------------  ------------  ------------  ------------
                                         (840)        21,461        20,621             -        20,621
                                  ------------  -------------  ------------  ------------  ------------

TOTAL CAPITALIZATION & LIABILITIES  $ 185,310      $ 267,539     $ 452,849    $ (184,731)    $ 268,118
                                  ============  =============  ============  ============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                          HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
                                  CONSOLIDATING STATEMENT OF INCOME
                             FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                        (THOUSANDS OF DOLLARS)

                                    Horizon
                                    Energy      Horizon Energy                             Consolidated
                                  Development,    Holdings     Total Before  Eliminations  Horizon and
                                     Inc.       (Consolidated) Eliminations    (Dr) Cr     Subsidiaries
                                  ------------  -------------  ------------  ------------  ------------

OPERATING REVENUE:                      $ 117      $ 123,512     $ 123,629        $ (204)    $ 123,425
                                  ------------  -------------  ------------  ------------  ------------

OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation                         -         65,723        65,723             -        65,723
Operation and Maintenance               4,695         27,993        32,688          (204)       32,484
Property, Franchise & Other Taxes          24          3,133         3,157             -         3,157
Depreciation, Depletion and
Amortization                              (12)        15,269        15,257             -        15,257

                                  ------------  -------------  ------------  ------------  ------------
                                        4,707        112,118       116,825          (204)      116,621
                                  ------------  -------------  ------------  ------------  ------------
Operating Income (Loss)                (4,590)        11,394         6,804             -         6,804
                                  ------------  -------------  ------------  ------------  ------------

OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries                           11,870              -        11,870       (11,870)            -
Interest - Intercompany                     4              -             4             -             4
Other Income                               16          2,035         2,051             -         2,051
Interest on Long-Term Debt                  -           (837)         (837)            -          (837)
Interest-Intercompany                  (5,891)             -        (5,891)            -        (5,891)
Other Interest                           (352)             -          (352)            -          (352)
                                  ------------  -------------  ------------  ------------  ------------

Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries                    1,057         12,592        13,649       (11,870)        1,779
                                  ------------  -------------  ------------  ------------  ------------


Income Taxes                           (4,926)        (1,211)       (6,137)            -        (6,137)
Minority Interest in
Foreign Subsidiaries                        -         (1,933)       (1,933)            -        (1,933)
                                  ------------  -------------  ------------  ------------  ------------

Net Income (Loss) Available
for Common Stock                      $ 5,983       $ 11,870      $ 17,853     $ (11,870)      $ 5,983
                                  ============  =============  ============  ============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.


                          HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
                    CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                             FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                        (THOUSANDS OF DOLLARS)

                                    Horizon
                                    Energy      Horizon Energy                             Consolidated
EARNINGS REINVESTED               Development,    Holdings     Total Before  Eliminations  Horizon and
IN THE BUSINESS                      Inc.       (Consolidated) Eliminations    (Dr) Cr     Subsidiaries
                                  ------------  -------------  ------------  ------------  ------------

Balance at Beginning of Year        $ (23,210)      $ 19,499      $ (3,711)    $ (19,499)    $ (23,210)

Net Income (Loss) Available
for Common Stock                        5,983         11,870        17,853       (11,870)        5,983

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

Balance at End of Year              $ (17,227)      $ 31,369      $ 14,142     $ (31,369)    $ (17,227)
                                  ============  =============  ============  ============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                          HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
                           CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                             FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                        (THOUSANDS OF DOLLARS)

                                    Horizon
                                    Energy      Horizon Energy Total Before                Consolidated
                                  Development,    Holdings     Eliminations  Eliminations  Horizon and
                                     Inc.       (Consolidated) & Adjustments   (Dr) Cr     Subsidiaries
                                  ------------  -------------  ------------  ------------  ------------

Net Income (Loss) Available for
Common Stock                          $ 5,983       $ 11,870      $ 17,853     $ (11,870)      $ 5,983
                                  ------------  -------------  ------------  ------------  ------------

Other Comprehensive Income (Loss) :
Foreign Currency Translation
Adjustment                             13,989         13,989        27,978       (13,989)       13,989
                                  ------------  -------------  ------------  ------------  ------------

Other Comprehensive Income (Loss)      13,989         13,989        27,978       (13,989)       13,989
                                  ------------  -------------  ------------  ------------  ------------

Comprehensive Income (Loss)          $ 19,972       $ 25,859      $ 45,831     $ (25,859)     $ 19,972
                                  ============  =============  ============  ============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                          HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
                                CONSOLIDATING STATEMENT OF CASH FLOWS
                             FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                        (THOUSANDS OF DOLLARS)

                                     Horizon
                                     Energy      Horizon EnergyTotal Before                Consolidated
                                   Development,   Holdings     Eliminations  Eliminations  Horizon and
                                      Inc.       (Consolidated)& Adjustments & Adjustments Subsidiaries
                                   ------------  --------------------------  ------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                      $ 5,983      $ 11,870      $ 17,853     $ (11,870)      $ 5,983
Adjustments to Reconcile Net Income
  to Net Cash Provided by Operating
  Activities:
Unremitted Earnings of Subsidiaries    (11,870)            -       (11,870)       11,870             -
Depreciation, Depletion &
  Amortization                             (12)       15,269        15,257             -        15,257
Deferred Income Taxes                   (1,198)       (3,505)       (4,703)            -        (4,703)
Minority Interest in Foreign
  Subsidiaries                               -         1,933         1,933             -         1,933
Other                                        -          (420)         (420)            -          (420)

Change in:
Accounts Receivable - Intercompany         (85)            -           (85)           50           (35)
Receivables and Unbilled Utility
  Revenue                                  (72)         (811)         (883)            -          (883)
Material and Supplies                        -           (25)          (25)            -           (25)
Prepayments                                (97)         (513)         (610)            -          (610)
Accounts Payable                            22        (1,619)       (1,597)          (35)       (1,632)
Accounts Payable - Intercompany            935            15           950           (15)          935
Other Accruals and Current
  Liabilities                              881           608         1,489             -         1,489
Other Assets                                26            76           102             -           102
Other Liabilities                          113            (7)          106             -           106
                                   ------------  ------------  ------------  ------------  ------------

Net Cash Provided by (Used in)
Operations                              (5,374)       22,871        17,497             -        17,497
                                   ------------  ------------  ------------  ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                       (48)       (7,450)       (7,498)            -        (7,498)
Change in Notes Receivable - Intercompany  300             -           300             -           300
Other                                        -         1,011         1,011             -         1,011
                                   ------------  ------------  ------------  ------------  ------------
Net Cash Provided by (Used In)
Investing  Activities                      252        (6,439)       (6,187)            -        (6,187)
                                   ------------  ------------  ------------  ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable - Intercompany   5,000             -         5,000             -         5,000
Reduction of Long-Term Debt                  -        (8,540)       (8,540)            -        (8,540)
                                   ------------  ------------  ------------  ------------  ------------

Net Cash Provided by (Used in)
Financing Activities                     5,000        (8,540)       (3,540)            -        (3,540)
                                   ------------  ------------  ------------  ------------  ------------

Effect of Exchange Rates on Cash             -         2,248         2,248             -         2,248
                                   ------------  ------------  ------------  ------------  ------------

Net Increase (Decrease) in Cash
and Temporary Cash Investments            (122)       10,140        10,018             -        10,018

Cash and Temporary Cash Investments
of Beginning of Period                     147        18,192        18,339             -        18,339
                                   ------------  ------------  ------------  ------------  ------------

Cash and Temporary Cash
Investments at End of Year                $ 25      $ 28,332      $ 28,357           $ -      $ 28,357
                                   ============  ============  ============  ============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                     HORIZON ENERGY HOLDINGS
                                   CONSOLIDATING BALANCE SHEET
                                      AT SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)

                                                                                          Consolidated
                                  Horizon    Horizon Energy                                 Horizon
                                   Energy    Development B.V. Total Before               Energy Holdings
                                  Holdings    (Consolidated)  Eliminations Eliminations  and Subsidiaries
                                 ----------  ---------------  ------------ ------------  ----------------

ASSETS

PROPERTY, PLANT & EQUIPMENT             $ -     $ 408,721     $ 408,721          $ -     $ 408,721
Less:  Accumulated DD&A                   -       180,865       180,865            -       180,865
                                 -----------  ------------   -----------  -----------   -----------
                                          -       227,856       227,856            -       227,856
                                 -----------  ------------   -----------  -----------   -----------
CURRENT ASSETS:
Cash and Temporary Cash Investments       -        28,332        28,332            -        28,332
Allowance for Uncollectible Accounts      -        (2,184)       (2,184)           -        (2,184)
Accounts Receivable - Intercompany        -            99            99            -            99
Accounts Receivable                       -         8,447         8,447            -         8,447
Materials and Supplies                    -         4,079         4,079            -         4,079
Prepayments                               -           626           626            -           626
                                 -----------  ------------   -----------  -----------   -----------
                                          -        39,399        39,399            -        39,399
                                 -----------  ------------   -----------  -----------   -----------
OTHER ASSETS:
Investment in Associated Companies  185,042             -       185,042     (185,042)            -
Other Assets                              -           284           284            -           284
                                 -----------  ------------   -----------  -----------   -----------
                                    185,042           284       185,326     (185,042)          284
                                 -----------  ------------   -----------  -----------   -----------
TOTAL ASSETS                      $ 185,042     $ 267,539     $ 452,581   $ (185,042)    $ 267,539
                                 ===========  ============   ===========  ===========   ===========

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                            $ 2          $ 29          $ 31        $ (29)          $ 2
Paid - in - Capital                 116,756       111,621       228,377     (111,621)      116,756
Earnings Reinvested in the Business  31,369        37,579        68,948      (37,579)       31,369
Accumulated Other Comprehen. Income  36,455        35,813        72,268      (35,813)       36,455
                                 -----------  ------------   -----------  -----------   -----------
Total Common Stock Equity           184,582       185,042       369,624     (185,042)      184,582
                                 -----------  ------------   -----------  -----------   -----------
Long-Term Debt, Net of Current
Portion                                   -         4,927         4,927            -         4,927
                                 -----------  ------------   -----------  -----------   -----------

Total Capitalization                184,582       189,969       374,551     (185,042)      189,509
                                 -----------  ------------   -----------  -----------   -----------
Minority Interest in Foreign
Subsidiaries                              -        37,048        37,048            -        37,048
                                 -----------  ------------   -----------  -----------   -----------

CURRENT AND ACCRUED LIABILITIES:
Current Portion of Long-Term Debt         -         4,927         4,927            -         4,927
Accounts Payable                          -        13,052        13,052            -        13,052
Accounts Payable - Intercompany           -            50            50            -            50
Other Accruals and Current
Liabilities                             461         1,031         1,492            -         1,492
                                 -----------  ------------   -----------  -----------   -----------
                                        461        19,060        19,521            -        19,521
                                 -----------  ------------   -----------  -----------   -----------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes        (1)       20,807        20,806            -        20,806
Other Deferred Credits                    -           655           655            -           655
                                 -----------  ------------   -----------  -----------   -----------
                                         (1)       21,462        21,461            -        21,461
                                 -----------  ------------   -----------  -----------   -----------

TOTAL CAPITALIZATION
 & LIABILITIES                    $ 185,042     $ 267,539     $ 452,581   $ (185,042)    $ 267,539
                                 ===========  ============   ===========  ===========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                     HORIZON ENERGY HOLDINGS
                                CONSOLIDATING STATEMENT OF INCOME
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)

                                                                                          Consolidated
                                  Horizon     Horizon Energy                             Horizon Energy
                                   Energy     Development B.V. Total Before Eliminations  Holdings and
                                  Holdings     (Consolidated)  Eliminations   (Dr) Cr     Subsidiaries
                                 -----------  ---------------  ------------ ------------  -------------

OPERATING REVENUE:                      $ -     $ 123,512       $ 123,512          $ -     $ 123,512
                                 -----------  ------------     -----------  -----------   -----------

OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation                       -        65,723          65,723            -        65,723
Operation                                 -        27,993          27,993            -        27,993
Property, Franchise & Other Taxes         -         3,133           3,133            -         3,133
Depreciation, Depletion and
Amortization                              -        15,269          15,269            -        15,269
                                 -----------  ------------     -----------  -----------   -----------
                                          -       112,118         112,118            -       112,118
                                 -----------  ------------     -----------  -----------   -----------
Operating Income (Loss)                   -        11,394          11,394            -        11,394
                                 -----------  ------------     -----------  -----------   -----------

OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries                         12,330             -          12,330      (12,330)            -
Other Income                              -         2,035           2,035            -         2,035
Interest on Long-Term Debt                -          (837)           (837)           -          (837)
                                 -----------  ------------     -----------  -----------   -----------

Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries                 12,330        12,592          24,922      (12,330)       12,592
                                 -----------  ------------     -----------  -----------   -----------

Income Taxes                            460        (1,671)         (1,211)           -        (1,211)
Minority Interest in
Foreign Subsidiaries                      -        (1,933)         (1,933)           -        (1,933)
                                 -----------  ------------     -----------  -----------   -----------

Net Income (Loss) Available
for Common Stock                   $ 11,870      $ 12,330        $ 24,200    $ (12,330)     $ 11,870
                                 ===========  ============     ===========  ===========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                     HORIZON ENERGY HOLDINGS
                  CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)

                                                                                        Consolidated
                                  Horizon    Horizon Energy                            Horizon Energy
EARNINGS REINVESTED                Energy    Development B.V. Total Before Eliminations  Holdings and
IN THE BUSINESS                   Holdings    (Consolidated)  Eliminations   (Dr) Cr     Subsidiaries
                                 ----------- ---------------  ------------ ------------ -------------

Balance at Beginning of Year       $ 19,499      $ 25,249      $ 44,748    $ (25,249)     $ 19,499

Net Income (Loss) Available
for Common Stock                     11,870        12,330        24,200      (12,330)       11,870
                                 -----------  ------------   -----------  -----------   -----------

Balance at End of Year             $ 31,369      $ 37,579      $ 68,948    $ (37,579)     $ 31,369
                                 ===========  ============   ===========  ===========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                     HORIZON ENERGY HOLDINGS
                         CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)

                                                                                          Consolidated
                                  Horizon    Horizon Energy   Total Before               Horizon Energy
                                   Energy    Development B.V. Eliminations  Eliminations  Holdings and
                                  Holdings    (Consolidated)  & Adjustments   (Dr) Cr     Subsidiaries
                                 ----------- --------------   ------------- ------------ -------------

Net Income (Loss) Available for
Common Stock                       $ 11,870      $ 12,330      $ 24,200    $ (12,330)     $ 11,870
                                 -----------  ------------   -----------  -----------   -----------

Other Comprehensive Income (Loss) :
Foreign Currency Translation
Adjustment                           13,989        13,989        27,978      (13,989)       13,989
                                 -----------  ------------   -----------  -----------   -----------

Other Comprehensive Income (Loss)    13,989        13,989        27,978      (13,989)       13,989
                                 -----------  ------------   -----------  -----------   -----------

Comprehensive Income (Loss)        $ 25,859      $ 26,319      $ 52,178    $ (26,319)     $ 25,859
                                 ===========  ============   ===========  ===========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.


                                   HORIZON ENERGY HOLDINGS
                            CONSOLIDATING STATEMENT OF CASH FLOWS
                         FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                    (THOUSANDS OF DOLLARS)

                                                                                       Consolidated
                                 Horizon  Horizon Energy   Total Before               Horizon Energy
                                  Energy  Development B.V. Eliminations                Holdings and
                                 Holdings  (Consolidated)  &Adjustments Eliminations  Subsidiaries
                                --------- ---------------- ------------- ------------ -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                 $ 11,870     $ 12,330     $ 24,200      $ (12,330)    $ 11,870
Adjustments to Reconcile Net Income
  to Net Cash Provided by Operating
  Activities:
Unremitted Earn. of Subsidiaries   (12,330)           -      (12,330)        12,330            -
Depreciation, Depletion &
  Amortization                           -       15,269       15,269              -       15,269
Deferred Income Taxes                    -       (3,505)      (3,505)             -       (3,505)
Minority Interest in Foreign
  Subsidiaries                           -        1,933        1,933              -        1,933
Other                                    -         (420)        (420)             -         (420)

Change in:
Receivables and Unbilled Utility
  Revenue                                -         (811)        (811)             -         (811)
Material and Supplies                    -          (25)         (25)             -          (25)
Prepayments                              -         (513)        (513)             -         (513)
Accounts Payable                         -       (1,619)      (1,619)             -       (1,619)
Accounts Payable - Intercompany          -           15           15              -           15
Other Accruals and Current
  Liabilities                          460          148          608              -          608
Other Assets                             -           76           76              -           76
Other Liabilities                        -           (7)          (7)             -           (7)
                                -----------  -----------  -----------    -----------  -----------

Net Cash Provided by (Used in)
Operations                               -       22,871       22,871              -       22,871
                                -----------  -----------  -----------    -----------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                     -       (7,450)      (7,450)             -       (7,450)
Other                                    -        1,011        1,011              -        1,011
                                -----------  -----------  -----------    -----------  -----------
Net Cash Provided by (Used In)
Investing  Activities                    -       (6,439)      (6,439)             -       (6,439)
                                -----------  -----------  -----------    -----------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction of Long-Term Debt              -       (8,540)      (8,540)             -       (8,540)
                                -----------  -----------  -----------    -----------  -----------

Net Cash Provided by (Used in)
Financing Activities                     -       (8,540)      (8,540)             -       (8,540)
                                -----------  -----------  -----------    -----------  -----------

Effect of Exchange Rates on Cash         -        2,248        2,248              -        2,248
                                -----------  -----------  -----------    -----------  -----------

Net Increase (Decrease) in Cash
and Temporary Cash Investments           -       10,140       10,140              -       10,140

Cash and Temporary Cash Investments
of Beginning of Period                   -       18,192       18,192              -       18,192
                                -----------  -----------  -----------    -----------  -----------

Cash and Temporary Cash
Investments at End of Year             $ -     $ 28,332     $ 28,332            $ -     $ 28,332
                                ===========  ===========  ===========    ===========  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                            HORIZON ENERGY DEVELOPMENT, B.V.
                                              CONSOLIDATING BALANCE SHEET
                                                 AT SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                               United
                                             Energy, a.s.                      Horizon Energy                              Consolidated
                                                (UE)         Horizon Energy     Bulgaria Ltd.  Total Before                Horizon B.V.
                                Horizon B.V.(Consolidated) Development, s.r.o. (Consolidated)  Eliminations  Eliminations and Subsidiaries
                                -----------  ------------- ------------------- --------------  ------------- -----------  ----------------

ASSETS

PROPERTY, PLANT & EQUIPMENT            $ -    $ 408,505            $ 216               $ -       $ 408,721         $ -       $ 408,721
Less:  Accumulated DD&A                  -      180,662              203                 -         180,865           -         180,865
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
                                         -      227,843               13                 -         227,856           -         227,856
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
CURRENT ASSETS:
Cash and Temporary Cash Investments     58       26,966            1,233                75          28,332           -          28,332
Allowance for Uncollectible Accounts     -       (2,184)               -                 -          (2,184)          -          (2,184)
Accounts Receivable - Intercompany     400            -              294                 -             694        (595)             99
Accounts Receivable                      3        8,467              (23)                -           8,447           -           8,447
Materials and Supplies                   -        4,079                -                 -           4,079           -           4,079
Prepayments                              -          595                5                26             626           -             626
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
                                       461       37,923            1,509               101          39,994        (595)         39,399
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
OTHER ASSETS:
Investment in Associated Companies 184,687            -                -                 -         184,687    (184,687)              -
Other Assets                           (40)         324                -                 -             284           -             284
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
                                   184,647          324                -                 -         184,971    (184,687)            284
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
TOTAL ASSETS                     $ 185,108    $ 266,090          $ 1,522             $ 101       $ 452,821   $ (185,282)     $ 267,539
                                ===========  ===========    =============        ==========      ==========  ==========     ===========

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                          $ 29     $ 59,770         $ (1,246)             $ 50        $ 58,603   $ (58,574)           $ 29
Paid - in - Capital                111,621       50,822            1,487                 -         163,930     (52,309)        111,621
Earnings Reinvest. in the Business  37,579       37,299              676              (415)         75,139     (37,560)         37,579
Accumulated Other Comprehen. Income 35,813       35,723              525                (4)         72,057     (36,244)         35,813
                                -----------  -----------    -------------        ----------      ----------  ----------    -----------
Total Common Stock Equity          185,042      183,614            1,442              (369)        369,729    (184,687)        185,042
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
Long-Term Debt, Net of Current
Portion                                  -        4,927                -                 -           4,927           -           4,927
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------

Total Capitalization               185,042      188,541            1,442              (369)        374,656    (184,687)        189,969
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
Minority Interest in Foreign
Subsidiaries                             -       37,048                -                 -          37,048           -          37,048
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------

CURRENT AND ACCRUED LIABILITIES:
Current Portion of Long-Term Debt        -        4,927                -                 -           4,927           -           4,927
Accounts Payable                         1       13,000               54                (9)         13,046           6          13,052
Accounts Payable - Intercompany         56          116                -               479             651        (601)             50
Other Accruals and Current
Liabilities                              9          996               26                 -           1,031           -           1,031
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
                                        66       19,039               80               470          19,655        (595)         19,060
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes        -       20,807                -                 -          20,807           -          20,807
Other Deferred Credits                   -          655                -                 -             655           -             655
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------
                                         -       21,462                -                 -          21,462           -          21,462
                                -----------  -----------    -------------        ----------      ----------  ----------     -----------

TOTAL CAPITALIZATION
 & LIABILITIES                   $ 185,108    $ 266,090          $ 1,522             $ 101       $ 452,821   $ (185,282)     $ 267,539
                                ===========  ===========    =============        ==========      ==========  ==========     ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.


                                            HORIZON ENERGY DEVELOPMENT, B.V.
                                           CONSOLIDATING STATEMENT OF INCOME
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)


                                                                              Horizon Energy                             Consolidated
                                                 UE         Horizon Energy     Bulgaria Ltd. Total Before Eliminations   Horizon B.V.
                                Horizon B.V.(Consolidated)Development, s.r.o. (Consolidated) Eliminations   (Dr) Cr    and Subsidiaries
                                -----------  ------------ ------------------- -------------- ------------ ------------ -----------------

OPERATING REVENUE:                     $ -    $ 123,425          $ 1,245              $ -    $ 124,670      $ (1,158)      $ 123,512
                                -----------  -----------    -------------       ----------   ----------    ----------     -----------

OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation                      -       65,723                -                -       65,723             -          65,723
Operation and Maintenance               64       27,680              986              421       29,151        (1,158)         27,993
Property, Franchise & Other Taxes        -        2,993              140                -        3,133             -           3,133
Depreciation, Depletion and
Amortization                             -       15,262                7                -       15,269             -          15,269
                                -----------  -----------    -------------       ----------   ----------    ----------     -----------
                                        64      111,658            1,133              421      113,276        (1,158)        112,118
                                -----------  -----------    -------------       ----------   ----------    ----------     -----------
Operating Income (Loss)                (64)      11,767              112             (421)      11,394             -          11,394
                                -----------  -----------    -------------       ----------   ----------    ----------     -----------

OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries                        12,360            -                -                -       12,360       (12,360)              -
Other Income                            30        1,968               22               15        2,035             -           2,035
Interest on Long-Term Debt               -         (837)               -                -         (837)            -            (837)
Interest - Intercompany                  4            -                -               (4)           -             -               -
                                -----------  -----------    -------------       ----------   ----------    ----------     -----------

Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries                12,330       12,898              134             (410)      24,952       (12,360)         12,592
                                -----------  -----------    -------------       ----------   ----------    ----------     -----------


Income Taxes                             -       (1,708)              32                5       (1,671)            -          (1,671)
Minority Interest in
Foreign Subsidiaries                     -       (1,933)               -                -       (1,933)            -          (1,933)
                                -----------  -----------    -------------       ----------   ----------    ----------     -----------

Net Income (Loss) Available
for Common Stock                  $ 12,330     $ 12,673            $ 102           $ (415)    $ 24,690     $ (12,360)       $ 12,330
                                ===========  ===========    =============       ==========   ==========    ==========     ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.


                                            HORIZON ENERGY DEVELOPMENT, B.V.
                             CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)


                                                                              Horizon Energy                            Consolidated
EARNINGS REINVESTED                              UE         Horizon Energy     Bulgaria Ltd. Total Before Eliminations   Horizon B.V.
IN THE BUSINESS                 Horizon B.V.(Consolidated) Development, s.r.o. (Consolidated Eliminations    (Dr) Cr   and Subsidiaries
                                -----------  ------------  ------------------  ------------- ------------ ------------ ----------------

Balance at Beginning of Year      $ 25,249     $ 24,626             $ 574             $ -     $ 50,449     $ (25,200)     $ 25,249

Net Income (Loss) Available
for Common Stock                    12,330       12,673               102            (415)      24,690       (12,360)       12,330
                                -----------  -----------     -------------        --------   ----------    ----------   -----------

Balance at End of Year            $ 37,579     $ 37,299             $ 676          $ (415)    $ 75,139     $ (37,560)     $ 37,579
                                ===========  ===========     =============       =========   ==========    ==========   ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                            HORIZON ENERGY DEVELOPMENT, B.V.
                                    CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                      FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                 (THOUSANDS OF DOLLARS)

                                                                              Horizon Energy                             Consolidated
                                                 UE         Horizon Energy     Bulgaria Ltd.  Total Before Eliminations   Horizon B.V.
                                Horizon B.V.(Consolidated) Development, s.r.o. (Consolidated) Eliminations    (Dr) Cr   and Subsidiaries
                                -----------  ------------  -------------------  ------------- ------------ ------------ ----------------

Net Income (Loss) Available for
Common Stock                      $ 12,330     $ 12,673              $ 102           $ (415)      $ 24,690   $ (12,360)      $ 12,330
                                -----------  -----------      -------------       ----------     ----------  ----------    -----------

Other Comprehensive Income (Loss):
Foreign Currency Translation
Adjustment                          13,989       13,962                 97               (4)        28,044     (14,055)        13,989
                                -----------  -----------      -------------       ----------     ----------  ----------    -----------

Other Comprehensive Income (Loss)   13,989       13,962                 97               (4)        28,044     (14,055)        13,989
                                -----------  -----------      -------------       ----------     ----------  ----------    -----------

Comprehensive Income (Loss)       $ 26,319     $ 26,635              $ 199           $ (419)      $ 52,734   $ (26,415)      $ 26,319
                                ===========  ===========      =============       ==========     ==========  ==========    ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                             HORIZON ENERGY DEVELOPMENT, B.V.
                                           CONSOLIDATING STATEMENT OF CASH FLOWS
                                       FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                                  (THOUSANDS OF DOLLARS)


                                                                          Horizon Energy                            Consolidated
                                                  UE        Horizon Energy Bulgaria Ltd. Total Before                Horizon B.V.
                                 Horizon B.V.(Consolidated) Development,  (Consolidated) Eliminations Eliminations and Subsidiaries
                                 -----------  ------------  ------------- -------------  ------------ ------------ ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                  $ 12,330     $ 12,673         $ 102       $ (415)       $ 24,690    $ (12,360)     $ 12,330
Adjustments to Reconcile Net Income
  to Net Cash Provided by Operating
  Activities:
Unremitted Earnings of Subsidiaries (12,360)           -             -            -         (12,360)      12,360             -
Depreciation, Depletion &
  Amortization                            -       15,262             7            -          15,269            -        15,269
Deferred Income Taxes                     -       (3,503)           (2)           -          (3,505)           -        (3,505)
Minority Interest in Foreign
  Subsidiaries                            -        1,933             -            -           1,933            -         1,933
Other                                     -         (420)            -            -            (420)           -          (420)

Change in:
Accounts Receivable - Intercompany     (400)           -          (115)           -            (515)         515             -
Receivables and Unbilled Utility
  Revenue                                (4)        (830)           23            -            (811)           -          (811)
Material and Supplies                     -          (25)            -            -             (25)           -           (25)
Prepayments                               -         (486)           (1)         (26)           (513)           -          (513)
Accounts Payable                          6       (1,582)            2           (9)         (1,583)         (36)       (1,619)
Accounts Payable - Intercompany          15            -             -          479             494         (479)           15
Other Accruals and Current
  Liabilities                             -          107            41            -             148            -           148
Other Assets                              -           76             -            -              76            -            76
Other Liabilities                         -           (7)            -            -              (7)           -            (7)
                                 -----------  -----------   ------------------------     -----------  -----------  ------------

Net Cash Provided by (Used in)
Operations                             (413)      23,198            57           29          22,871            -        22,871
                                 -----------  -----------   ------------------------     -----------  -----------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                      -       (7,450)            -            -          (7,450)           -        (7,450)
Investment in Associated Companies      (50)           -             -            -             (50)          50             -
Other                                     -          735           276            -           1,011            -         1,011
                                 -----------  -----------   ------------------------     -----------  -----------  ------------
Net Cash Provided by (Used In)
Investing  Activities                   (50)      (6,715)          276            -          (6,489)          50        (6,439)
                                 -----------  -----------   ------------------------     -----------  -----------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Return of Capital                         -            -             -           50              50          (50)            -
Reduction of Long-Term Debt               -       (8,540)            -            -          (8,540)           -        (8,540)
                                 -----------  -----------   ------------------------     -----------  -----------  ------------

Net Cash Provided by (Used in)
Financing Activities                      -       (8,540)            -           50          (8,490)         (50)       (8,540)
                                 -----------  -----------   ------------------------     -----------  -----------  ------------

Effect of Exchange Rates on Cash        (65)       2,231            86           (4)          2,248            -         2,248
                                 -----------  -----------   ------------------------     -----------  -----------  ------------

Net Increase (Decrease) in Cash
and Temporary Cash Investments         (528)      10,174           419           75          10,140            -        10,140

Cash and Temporary Cash Investments
of Beginning of Period                  586       16,792           814            -          18,192            -        18,192
                                 -----------  -----------   -----------  -----------     -----------  -----------  ------------

Cash and Temporary Cash
Investments at End of Year             $ 58     $ 26,966       $ 1,233         $ 75        $ 28,332          $ -      $ 28,332
                                 ===========  ===========   ===========  ===========     ===========  ===========  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                              UNITED ENERGY, a.s.
                                          CONSOLIDATING BALANCE SHEET
                                             AT SEPTEMBER 30, 2004
                                             (THOUSANDS OF DOLLARS)


                                                                                                      Consolidated
                                                 Teplarna                  Total Before                  UE and
                                      UE          Liberec        ENOP      Eliminations Eliminations  Subsidiaries
                                  -----------   ------------  -----------  -----------  ------------  -----------

ASSETS

PROPERTY, PLANT & EQUIPMENT        $ 381,825       $ 26,634         $ 46    $ 408,505           $ -    $ 408,505
Less:  Accumulated DD&A              169,971         10,664           27      180,662             -      180,662
                                  -----------   ------------  -----------  -----------  ------------  -----------
                                     211,854         15,970           19      227,843             -      227,843
                                  -----------   ------------  -----------  -----------  ------------  -----------
CURRENT ASSETS:
Cash and Temporary Cash Investments   26,228            340          398       26,966             -       26,966
Allowance for Uncollectible Accounts  (1,549)          (630)          (5)      (2,184)            -       (2,184)
Accounts Receivable                    6,196          2,265            6        8,467             -        8,467
Materials and Supplies                 3,849            230            -        4,079             -        4,079
Prepayments                              584             11            -          595             -          595
                                  -----------   ------------  -----------  -----------  ------------  -----------
                                      35,308          2,216          399       37,923             -       37,923
                                  -----------   ------------  -----------  -----------  ------------  -----------
OTHER ASSETS:
Investment in Associated Companies    12,199              -            -       12,199       (12,199)           -
Other Assets                             239             85            -          324             -          324
                                  -----------   ------------  -----------  -----------  ------------  -----------
                                      12,438             85            -       12,523       (12,199)         324
                                  -----------   ------------  -----------  -----------  ------------  -----------
TOTAL ASSETS                       $ 259,600       $ 18,271        $ 418    $ 278,289     $ (12,199)   $ 266,090
                                  ===========   ============  ===========  ===========  ============  ===========

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                        $ 59,770       $ 17,004          $ 3     $ 76,777     $ (17,007)    $ 59,770
Paid - in - Capital                   50,822         (5,723)         883       45,982         4,840       50,822
Earnings Reinvested in the Business   37,299           (619)        (551)      36,129         1,170       37,299
Accumulated Other Comprehen.Income    35,723          1,143           59       36,925        (1,202)      35,723
                                  -----------   ------------  -----------  -----------  ------------  -----------
Total Common Stock Equity            183,614         11,805          394      195,813       (12,199)     183,614
                                  -----------   ------------  -----------  -----------  ------------  -----------
Long-Term Debt, Net of Current
Portion                                4,927              -            -        4,927             -        4,927
                                  -----------   ------------  -----------  -----------  ------------  -----------

Total Capitalization                 188,541         11,805          394      200,740       (12,199)     188,541
                                  -----------   ------------  -----------  -----------  ------------  -----------
Minority Interest in Foreign
Subsidiaries                          31,989          5,059            -       37,048             -       37,048
                                  -----------   ------------  -----------  -----------  ------------  -----------

CURRENT AND ACCRUED LIABILITIES:
Current Portion of Long-Term Debt      4,927              -            -        4,927             -        4,927
Accounts Payable                      11,611          1,388            1       13,000             -       13,000
Accounts Payable - Intercompany           93             23            -          116             -          116
Other Accruals and Current
Liabilities                            1,431           (458)          23          996             -          996
                                  -----------   ------------  -----------  -----------  ------------  -----------
                                      18,062            953           24       19,039             -       19,039
                                  -----------   ------------  -----------  -----------  ------------  -----------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes     20,353            454            -       20,807             -       20,807
Other Deferred Credits                   655              -            -          655             -          655
                                  -----------   ------------  -----------  -----------  ------------  -----------
                                      21,008            454            -       21,462             -       21,462
                                  -----------   ------------  -----------  -----------  ------------  -----------

TOTAL CAPITALIZATION & LIABILITIES $ 259,600       $ 18,271        $ 418    $ 278,289     $ (12,199)   $ 266,090
                                  ===========   ============  ===========  ===========  ============  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                              UNITED ENERGY, a.s.
                                       CONSOLIDATING STATEMENT OF INCOME
                                  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                             (THOUSANDS OF DOLLARS)


                                                                                                      Consolidated
                                                 Teplarna                  Total Before Eliminations     UE and
                                      UE          Liberec        ENOP      Eliminations   (Dr) Cr     Subsidiaries
                                  -----------   ------------  -----------  -----------  ------------  -----------

OPERATING REVENUE:                 $ 103,834       $ 22,596          $ 4    $ 126,434      $ (3,009)   $ 123,425
                                  -----------   ------------  -----------  -----------  ------------  -----------

OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation                   50,323         15,400            -       65,723             -       65,723
Operation and Maintenance             23,647          7,032           10       30,689        (3,009)      27,680
Property, Franchise & Other Taxes      2,552            441            -        2,993             -        2,993
Depreciation, Depletion and
Amortization                          13,916          1,342            4       15,262             -       15,262
                                  -----------   ------------  -----------  -----------  ------------  -----------
                                      90,438         24,215           14      114,667        (3,009)     111,658
                                  -----------   ------------  -----------  -----------  ------------  -----------
Operating Income (Loss)               13,396         (1,619)         (10)      11,767             -       11,767
                                  -----------   ------------  -----------  -----------  ------------  -----------

OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries                            (791)             -            -         (791)          791            -
Other Income                           1,917             47            4        1,968             -        1,968
Interest on Long-Term Debt              (837)             -            -         (837)            -         (837)
                                  -----------   ------------  -----------  -----------  ------------  -----------

Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries                  13,685         (1,572)          (6)      12,107           791       12,898
                                  -----------   ------------  -----------  -----------  ------------  -----------

Income Taxes                          (1,196)          (656)         144       (1,708)            -       (1,708)
Minority Interest in
Foreign Subsidiaries                  (2,208)           275            -       (1,933)            -       (1,933)
                                  -----------   ------------  -----------  -----------  ------------  -----------

Net Income (Loss) Available
for Common Stock                    $ 12,673         $ (641)      $ (150)    $ 11,882         $ 791     $ 12,673
                                  ===========   ============  ===========  ===========  ============  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                              UNITED ENERGY, a.s.
                         CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                                  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                             (THOUSANDS OF DOLLARS)


                                                                                                      Consolidated
EARNINGS REINVESTED                              Teplarna                  Total Before Eliminations     UE and
IN THE BUSINESS                       UE          Liberec        ENOP      Eliminations   (Dr) Cr     Subsidiaries
                                  -----------   ------------  -----------  -----------  ------------  -----------

Balance at Beginning of Year        $ 24,626           $ 22       $ (401)    $ 24,247         $ 379     $ 24,626

Net Income (Loss) Available
for Common Stock                      12,673           (641)        (150)      11,882           791       12,673
                                  -----------   ------------  -----------  -----------  ------------  -----------

Balance at End of Year              $ 37,299         $ (619)      $ (551)    $ 36,129       $ 1,170     $ 37,299
                                  ===========   ============  ===========  ===========  ============  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                              UNITED ENERGY, a.s.
                                CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                                  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                             (THOUSANDS OF DOLLARS)

                                                                                                      Consolidated
                                                 Teplarna                  Total Before Eliminations     UE and
                                      UE          Liberec        ENOP      Eliminations   (Dr) Cr     Subsidiaries
                                  -----------   ------------  -----------  -----------  ------------  -----------

Net Income (Loss) Available for
Common Stock                        $ 12,673         $ (641)      $ (150)    $ 11,882         $ 791     $ 12,673
                                  -----------   ------------  -----------  -----------  ------------  -----------

Other Comprehensive Income (Loss):
Foreign Currency Translation
Adjustment                            13,962            905           31       14,898          (936)      13,962
                                  -----------   ------------  -----------  -----------  ------------  -----------

Other Comprehensive Income (Loss)     13,962            905           31       14,898          (936)      13,962
                                  -----------   ------------  -----------  -----------  ------------  -----------

Comprehensive Income (Loss)         $ 26,635          $ 264       $ (119)    $ 26,780        $ (145)    $ 26,635
                                  ===========   ============  ===========  ===========  ============  ===========


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                                 UNITED ENERGY, a.s.
                                        CONSOLIDATING STATEMENT OF CASH FLOWS
                                    FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                               (THOUSANDS OF DOLLARS)


                                                                              Total Before                Consolidated
                                                   Teplarna                   Eliminations                   UE and
                                        UE          Liberec        ENOP       & Adjustments Eliminations  Subsidiaries
                                    -----------   ------------  ------------  ------------  ------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                     $ 12,673         $ (641)       $ (150)     $ 11,882         $ 791      $ 12,673
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted Earnings of Subsidiaries        791              -             -           791          (791)            -
Depreciation, Depletion &
Amortization                            13,916          1,342             4        15,262             -        15,262
Deferred Income Taxes                   (2,992)          (655)          144        (3,503)            -        (3,503)
Minority Interest in Foreign
Subsidiaries                             2,208           (275)            -         1,933             -         1,933
Other                                     (420)             -             -          (420)            -          (420)

Change in:
Receivables and Unbilled Utility
Revenue                                   (985)           155             -          (830)            -          (830)
Material and Supplies                       17            (42)            -           (25)            -           (25)
Prepayments                               (489)             3             -          (486)            -          (486)
Accounts Payable                        (1,981)           403             -        (1,578)           (4)       (1,582)
Accounts Payable - Intercompany             (4)             -             -            (4)            4             -
Other Accruals and Current
Liabilities                                391           (284)            -           107             -           107
Other Assets                               144            (68)            -            76             -            76
Other Liabilities                           (7)             -             -            (7)            -            (7)
                                    -----------   ------------  ------------  ------------  ------------  ------------

Net Cash Provided by (Used in)
Operations                              23,262            (62)           (2)       23,198             -        23,198
                                    -----------   ------------  ------------  ------------  ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                    (5,471)        (1,979)            -        (7,450)            -        (7,450)
Other                                      729              6             -           735             -           735
                                    -----------   ------------  ------------  ------------  ------------  ------------
Net Cash Provided by (Used In)
Investing  Activities                   (4,742)        (1,973)            -        (6,715)            -        (6,715)
                                    -----------   ------------  ------------  ------------  ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction of Long-Term Debt             (8,540)             -             -        (8,540)            -        (8,540)
                                    -----------   ------------  ------------  ------------  ------------  ------------

Net Cash Provided by (Used in)
Financing Activities                    (8,540)             -             -        (8,540)            -        (8,540)
                                    -----------   ------------  ------------  ------------  ------------  ------------

Effect of Exchange Rates on Cash         2,051            151            29         2,231             -         2,231
                                    -----------   ------------  ------------  ------------  ------------  ------------

Net Increase (Decrease) in Cash
and Temporary Cash Investments          12,031         (1,884)           27        10,174             -        10,174

Cash and Temporary Cash Investments
of Beginning of Period                  14,197          2,224           371        16,792             -        16,792
                                    -----------   ------------  ------------  ------------  ------------  ------------

Cash and Temporary Cash
Investments at End of Year            $ 26,228          $ 340         $ 398      $ 26,966           $ -      $ 26,966
                                    ===========   ============  ============  ============  ============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                    HORIZON ENERGY BULGARIA, LTD.
                                    CONSOLIDATING BALANCE SHEET
                                       AT SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)

                                                                                        Consolidated
                                                                                       Horizon Energy
                                 Horizon Energy               Total Before              Bulgaria Ltd
                                  Bulgaria Ltd  Sofia Energy  Eliminations Eliminations Subsidiaries
                                 -------------- ------------  ------------ ------------ -------------

ASSETS

CURRENT ASSETS:
Cash and Temporary Cash Investments       49             26           75            -            75
Accounts Receivable - Intercompany       473              -          473         (473)            -
Prepayments                                -             26           26            -            26
                                  -----------   ------------  -----------  -----------  ------------
                                         522             52          574         (473)          101
                                  -----------   ------------  -----------  -----------  ------------
OTHER ASSETS:
Investment in Associated Companies      (412)             -         (412)         412             -
                                  -----------   ------------  -----------  -----------  ------------
                                        (412)             -         (412)         412             -
                                  -----------   ------------  -----------  -----------  ------------
TOTAL ASSETS                           $ 110           $ 52        $ 162        $ (61)        $ 101
                                  ===========   ============  ===========  ===========  ============

CAPITALIZATION & LIABILITIES

CAPITALIZATION:
Common Stock                            $ 50            $ 8         $ 58         $ (8)         $ 50
Earnings Reinvested in the Business     (415)          (402)        (817)         402          (415)
Accumulated Other Comprehensive Income    (4)           (18)         (22)          18            (4)
                                  -----------   ------------  -----------  -----------  ------------

Total Capitalization                    (369)          (412)        (781)         412          (369)
                                  -----------   ------------  -----------  -----------  ------------
Minority Interest in Foreign
Subsidiaries                               -              -            -            -             -
                                  -----------   ------------  -----------  -----------  ------------

CURRENT AND ACCRUED LIABILITIES:
Accounts Payable                           -             (9)          (9)           -            (9)
Accounts Payable - Intercompany          479            473          952         (473)          479
                                  -----------   ------------  -----------  -----------  ------------
                                         479            464          943         (473)          470
                                  -----------   ------------  -----------  -----------  ------------

TOTAL CAPITALIZATION & LIABILITIES     $ 110           $ 52        $ 162        $ (61)        $ 101
                                  ===========   ============  ===========  ===========  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                   HORIZON ENERGY BULGARIA, LTD.
                                 CONSOLIDATING STATEMENT OF INCOME
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)

                                                                                        Consolidated
                                                                                       Horizon Energy
                                 Horizon Energy               Total Before Eliminations Bulgaria Ltd
                                  Bulgaria Ltd  Sofia Energy  Eliminations   (Dr) Cr    Subsidiaries
                                 -------------- ------------  ------------ ------------ -------------

OPERATING EXPENSE:
Operation and Maintenance                  8            413          421            -           421
                                  -----------   ------------  -----------  -----------  ------------
                                           8            413          421            -           421
                                  -----------   ------------  -----------  -----------  ------------
Operating Income (Loss)                   (8)          (413)        (421)           -          (421)
                                  -----------   ------------  -----------  -----------  ------------

OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries                            (402)             -         (402)         402             -
Other Income                              (1)            16           15            -            15
Interest-Intercompany                     (4)             -           (4)           -            (4)
                                  -----------   ------------  -----------  -----------  ------------

Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries                    (415)          (397)        (812)         402          (410)
                                  -----------   ------------  -----------  -----------  ------------

Income Taxes                               -              5            5            -             5
                                  -----------   ------------  -----------  -----------  ------------

Net Income (Loss) Available
for Common Stock                      $ (415)        $ (402)      $ (817)       $ 402        $ (415)
                                  ===========   ============  ===========  ===========  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                   HORIZON ENERGY BULGARIA, LTD.
                  CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)

                                                                                        Consolidated
                                                                                       Horizon Energy
EARNINGS REINVESTED              Horizon Energy               Total Before Eliminations Bulgaria Ltd
IN THE BUSINESS                   Bulgaria Ltd  Sofia Energy  Eliminations   (Dr) Cr    Subsidiaries
                                 -------------  ------------  ------------ ------------ -------------

Balance at Beginning of Year             $ -            $ -          $ -          $ -           $ -

Net Income (Loss) Available
for Common Stock                        (415)          (402)        (817)         402          (415)
                                  -----------   ------------  -----------  -----------  ------------

Balance at End of Year                $ (415)        $ (402)      $ (817)       $ 402        $ (415)
                                  ===========   ============  ===========  ===========  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.




                                   HORIZON ENERGY BULGARIA, LTD.
                          CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                      (THOUSANDS OF DOLLARS)
                                                                                        Consolidated
                                                                                       Horizon Energy
                                 Horizon Energy               Total Before Eliminations Bulgaria Ltd
                                  Bulgaria Ltd  Sofia Energy  Eliminations   (Dr) Cr    Subsidiaries
                                 -------------- ------------  ------------ ------------ -------------

Net Income (Loss) Available for
Common Stock                          $ (415)        $ (402)      $ (817)       $ 402        $ (415)
                                  -----------   ------------  -----------  -----------  ------------

Other Comprehensive Income (Loss):
Foreign Currency Translation
Adjustment                                (4)           (18)         (22)          18            (4)
                                  -----------   ------------  -----------  -----------  ------------

Other Comprehensive Income (Loss)         (4)           (18)         (22)          18            (4)
                                  -----------   ------------  -----------  -----------  ------------

Comprehensive Income (Loss)           $ (419)        $ (420)      $ (839)       $ 420        $ (419)
                                  ===========   ============  ===========  ===========  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



                                     HORIZON ENERGY BULGARIA, LTD.
                                 CONSOLIDATING STATEMENT OF CASH FLOWS
                             FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004
                                        (THOUSANDS OF DOLLARS)

                                                                                            Consolidated
                                                                Total Before               Horizon Energy
                                   Horizon Energy               Eliminations                Bulgaria Ltd
                                    Bulgaria Ltd  Sofia Energy  & Adjustments Eliminations  Subsidiaries
                                   -------------- ------------  ------------- ------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                       $ (415)        $ (402)       $ (817)        $ 402        $ (415)
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted Earnings of Subsidiaries        402              -           402          (402)            -

Change in:
Accounts Receivable - Intercompany        (473)             -          (473)          473             -
Prepayments                                  -            (26)          (26)            -           (26)
Accounts Payable                            (1)            (8)           (9)            -            (9)
Accounts Payable - Intercompany            479            473           952          (473)          479
                                    -----------   ------------  ------------  ------------  ------------

Net Cash Provided by (Used in)
Operations                                  (8)            37            29             -            29
                                    -----------   ------------  ------------  ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in Associated Companies          (8)             -            (8)            8             -
                                    -----------   ------------  ------------  ------------  ------------
Net Cash Provided by (Used In)
Investing  Activities                       (8)             -            (8)            8             -
                                    -----------   ------------  ------------  ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Return of Capital                           50              8            58            (8)           50
                                    -----------   ------------  ------------  ------------  ------------

Net Cash Provided by (Used in)
Financing Activities                        50              8            58            (8)           50
                                    -----------   ------------  ------------  ------------  ------------

Effect of Exchange Rates on Cash            15            (19)           (4)            -            (4)
                                    -----------   ------------  ------------  ------------  ------------

Net Increase (Decrease) in Cash
and Temporary Cash Investments              49             26            75             -            75

Cash and Temporary Cash Investments
of Beginning of Period                       -              -             -             -             -
                                    -----------   ------------  ------------  ------------  ------------

Cash and Temporary Cash
Investments at End of Year                $ 49           $ 26          $ 75           $ -          $ 75
                                    ===========   ============  ============  ============  ============


See Notes to Consolidated  Financial  Statements  included in Item 8 of National
Fuel Gas  Company's  Form 10-K for the fiscal  year ended  September  30,  2004,
incorporated herein by reference.



EXHIBITS

  A.    *(1)  Annual Report on Form 10-K for fiscal year ended September 30, 2004 filed December 14, 2004 (File No. 1-3880).

         (2)  National Fuel Gas Company 2004 Annual Report to Shareholders (paper copy submitted under cover of
              Form SE).

        *(3)  National Fuel Gas Company Proxy Statement, dated and filed January 6, 2005 (File No. 1-03880).

   B.    Articles of Incorporation, By-Laws and Partnership Agreements.

         (1)     National Fuel Gas Company

                    *i    Restated Certificate of Incorporation of National Fuel Gas Company, dated September 21, 1998
                          (Exhibit 3.1, Form 10-K for fiscal year ended September 30, 1998 in File No. 1-3880).

                   *ii    National Fuel Gas Company By-Laws as amended on December 9, 2004 (Exhibit 3 (ii), Form 8-K
                          dated December 9, 2004 in File No. 1-3880).

         (2)      National Fuel Gas Distribution Corporation

                    *i    By-Laws, as amended March 11, 1998.  (Exhibit (2)i, designated as Exhibit ex99-1 for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 1999.)

                   *ii    Restated Certificate of Incorporation of National Fuel Gas Distribution Corporation, dated
                          May 9, 1988 (Exhibit B-1 in File No. 70-7478).

         (3)      National Fuel Gas Supply Corporation

                     i    By-Laws, as amended effective April 1, 2004.  Designated as Exhibit ex99-1 for EDGAR purposes.

                   *ii    Articles of Incorporation of United Natural Gas Company, dated February 1, 1886 (Exhibit
                          (3)ii, Form U5S for fiscal year ended September 30, 1984).

                  *iii    Certificate of Merger and Consolidation dated January 2, 1951 (Exhibit (3)iii, Form U5S for
                          fiscal year ended September 30, 1984).

                   *iv    Joint Agreement and Plan of Merger, dated June 18, 1974 (Exhibit (3)iv, Form U5S for fiscal
                          year ended September 30, 1987).

                    *v    Certificate of Merger and Plan of Merger of Penn-York Energy Corporation and National Fuel
                          Gas Supply Corporation dated April 1, 1994 (Exhibit (3)v, designated as Exhibit ex99-3 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 1994).



*  Incorporated herein by reference as indicated.

EXHIBITS (Continued)

         (4)      Leidy Hub, Inc. (formerly Enerop Corporation)

                    *i    By-Laws (Exhibit A-15, File No. 70-7478).

                   *ii    Restated Certificate of Incorporation of Enerop Corporation dated October 15, 1993.  (Exhibit
                          (4)ii, designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 1999).

                  *iii    Action by Board of Directors to amend the By-Laws dated October 10, 1993 (Exhibit (4)iii,
                          designated as Exhibit ex-3 for EDGAR purposes, Form U5S for fiscal year ended September 30,
                          1993).

         (5)      Seneca Resources Corporation

                    *i    By-Laws, as amended (Exhibit (5)i, Form U5S for fiscal year ended September 30, 1989).

                   *ii    Articles of Incorporation of Mars Natural Gas Company dated March 29, 1913 (Exhibit (5)ii,
                          Form U5S for fiscal year ended September 30, 1984).

                  *iii    Secretary's Certificate dated January 4, 1918 (Exhibit (5)iii, Form U5S for fiscal year ended
                          September 30, 1984).

                   *iv    Articles of Amendment, dated March 30, 1955 (Exhibit (5)iv, Form U5S for fiscal year ended
                          September 30, 1984).

                    *v    Certificate of Amendment changing name of the Mars Company to Seneca Resources Corporation,
                          January 29, 1976 (Exhibit (5)v, Form U5S for fiscal year ended September 30, 1984).

                   *vi    Certificate of Merger and Plan of Merger of Seneca Resources Corporation and Empire
                          Exploration, Inc. dated April 29, 1994 (Exhibit (5)vi, designated as Exhibit EX-99-2 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 1994).

            *vii  Articles of Merger and Plan of Merger of HarCor Energy, Inc. with and into Seneca Resources
                          Corporation, filed August 31, 1999.  (Exhibit (5)vii, designated as Exhibit ex99-3 for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 1999.)

           *viii  Certificate of Ownership and Merger merging HarCor Energy, Inc. into Seneca Resources Corporation
                          filed August 31, 1999.  (Exhibit (5)viii, designated as Exhibit ex99-4 for EDGAR purposes,
                          Form U5S for fiscal year ended September 30, 1999.)

                   *ix Amended and Restated Articles of Incorporation of Seneca Resources Corporation, as filed
                          September 15, 2003.  (Exhibit (5)ix, designated as ex99-49 for EDGAR purposes, Form U5S for
                          fiscal year ended September 30, 2003.)


*  Incorporated herein by reference as indicated.


EXHIBITS (Continued)

         (6)      Empire Exploration Company


                    *i    Certificate of Limited Partnership, dated November 28, 1983.  (Designated as Exhibit ex99-1
                          for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).

                   *ii    Limited Partnership Agreement, dated November 28, 1983, between Empire  Exploration, Inc.
                          (now Seneca Resources Corporation) as general partner and Herman P. Loonsk as limited partner
                          (Exhibit (8), Form U5S for fiscal year ended September 30, 1984).

         (7)      Empire 1983 Drilling Program

                    *i    Certificate of Limited Partnership, dated November 28, 1983.  (Designated as Exhibit ex99-2
                          for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).

                   *ii    Amendment of Certificate of Limited Partnership, dated December 21, 1983.  (Designated as
                          Exhibit ex99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).

                  *iii    Limited Partnership Agreement, dated November 28, 1983, among Empire Exploration, Inc. (now
                          Seneca Resources Corporation) as general partner and those parties collectively called
                          limited partners (Exhibit (9), Form U5S for fiscal year ended September 30, 1984).

         (8)      Empire 1983 Joint Venture

                    *i    Business Certificate for Partners, dated December 6, 1983.  (Designated as Exhibit ex99-4 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).

                   *ii    Joint Venture Agreement, dated December 6, 1983, between Empire Exploration, Inc. (now Seneca
                          Resources Corporation) and Empire 1983 Drilling Program (Exhibit (10), Form U5S for fiscal
                          year ended September 30, 1984).

          (9)     Highland Forest Resources, Inc.

                    *i    Certificate of Incorporation, dated August 19, 1982 (Exhibit (11)i, Form U5S for fiscal year
                          ended September 30, 1985).

                   *ii    Articles of Merger and Plan of Merger of Utility Constructors, Inc. into Highland Land &
                          Minerals, Inc. filed October 1, 1999.  (Exhibit (9)iii, designated as Exhibit ex99-5 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.)



*  Incorporated herein by reference as indicated.


EXHIBITS (Continued)

                  *iii    Articles of Amendment of the Articles of the Corporation, dated June 8, 2000.  (Exhibit (9)iv,
                          designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30,
                          2000.)

                   *iv    Certificate of Incorporation of Highland Pipeline & Resources Corp., dated January 20, 2003.
                          (Exhibit (9)v, designated as Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003.)

                    *v    Certificate of Merger of Highland Forest Resources, Inc. with and into Highland Pipeline &
                          Resources Corp. dated February 3, 2003. (Exhibit (9)vi, designated as Exhibit ex99-5 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).

                    vi    By-Laws of Highland Forest Resources, Inc., as amended April 1, 2004.  Designated as Exhibit
                          ex99-2 for EDGAR purposes.

         (10)     Data-Track Account Services, Inc.

                    *i    Restated Articles of Incorporation, dated March 2, 1984 (Exhibit A-1, File No. 70-7512).

                    ii    By-Laws as amended April 1, 2004.  Designated as Exhibit ex99-3 for EDGAR purposes.

         (11)     National Fuel Resources, Inc.

                    *i    Articles of Incorporation, dated January 9, 1991 (Exhibit (14)i, designated as Exhibit
                          EX-3(a) for EDGAR purposes, Form U5S for fiscal year ended September 30, 1992).

                    ii    By-Laws, as amended March 30, 2004.  Designated as Exhibit ex99-4 for EDGAR purposes.

         (12)     Horizon Power, Inc. (formerly NFR Power, Inc.)

                    *i    Certificate of Incorporation, dated December 13, 1995.  (Exhibit (13)i, designated as Exhibit EX-3-1
                          for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.)

                   *ii    By-Laws.  (Exhibit (13)ii, designated as Exhibit EX-3-2 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 1999).

                  *iii    Certificate of Amendment of the Certificate of Incorporation of NFR Power, Inc., dated June
                          20, 2001.  (Designated as Exhibit ex99-5 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2001).


*  Incorporated herein by reference as indicated.



EXHIBITS (Continued)

                   *iv    By-Laws as amended March 28, 2003.  (Exhibit (12)iv, designated as Exhibit ex99-9 for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 2003).

        (13)      Seneca Energy II, LLC

                    *i    Articles of Organization, dated February 23, 2000.  (Designated as Exhibit ex99-6 for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 2001).

                   *ii    Amended and Restated Operating Agreement, dated March 1, 2000 (Confidential Treatment Requested)

        (14)      Model City Energy, LLC

                    *i    Articles of Organization, dated February 11, 2000.  (Designated as Exhibit ex99-7 for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 2001).

                   *ii    Operating Agreement, dated March 1, 2000 (Confidential Treatment Requested)

        (15)      Energy Systems North East, LLC

                    *i    Certificate of Formation, dated September 26, 2000.  (Designated as Exhibit ex99-8 for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 2001).

                   *ii    Limited Liability Company Agreement, dated September 26, 2000 (Confidential Treatment Requested).

        (16)      Horizon Energy Development, Inc.

                    *i    Certificate of Incorporation (Exhibit (13)i, designated as Exhibit EX-3(a) for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 1995).

                   *ii    By-Laws (Exhibit (13)ii, designated as Exhibit EX-3(b) for EDGAR purposes, Form U5S for
                          fiscal year ended September 30, 1995).

        (17)      Horizon Energy Holdings, Inc.

                    *i    Certificate of Incorporation, dated April 1, 1998.  (Exhibit (14)i designated as Exhibit
                          EX99-1 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998).

                   *ii    By-Laws.  (Exhibit (14)ii, designated as Exhibit EX99-2 for EDGAR purposes, Form U5S for
                          fiscal year ended September 30, 1998).

         (18)     Horizon Energy Development B.V. (formerly Beheeren-Beleggingmaatschappij Bruwabel B.V.)

                    *i    Articles of Incorporation (Exhibit (14), designated as Exhibit ex99-2 for EDGAR purposes,
                          Form U5S for fiscal year ended September 30, 1996).

*  Incorporated herein by reference as indicated.



EXHIBITS (Continued)

                   *ii    Notarial Record, dated December 4, 2001 (Exhibit (18)ii,   designated as Exhibit ex99-9 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).

         (19)     Horizon Energy Development, s.r.o. (formerly Power International, s.r.o.)

                    *i    Founding Notarial Deed, dated May 8, 1991 (Exhibit (15)i, designated as Exhibit ex99-9 for
                          EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996).

                   *ii    Notarial Deed, dated December 2, 1993 (Exhibit (15)ii, designated as Exhibit ex99-10 for
                          EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996).

                  *iii    Notarial Deed, dated June 28, 1996 (Exhibit (15)iii, designated as Exhibit ex99-11 for EDGAR
                          purposes, Form U5S/A for fiscal year ended September 30, 1996).

                   *iv    Notarial Deed, dated November 27, 1996 (Exhibit (15)iv, designated as Exhibit ex99-12 for EDGAR
                          purposes, Form U5S/A for fiscal year ended September 30, 1996).

                    *v    Notarial Deed, dated April 24, 2002 that adopted new Founder's Deed, dated April 24, 2002.
                          (Exhibit 19 (v) designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2002).

         (20)     Teplarna Liberec, a.s.

                    *i    Founding Contract, dated November 11, 1994 (Exhibit (21)i, designated as Exhibit ex99-12 for
                          EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1997).

                   *ii    Notarial Record, dated November 11, 1994 (Exhibit (21)ii, designated as Exhibit ex99-13 for
                          EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1997).

                  *iii    Articles of Association, dated June 21, 2001 as amended on June 19, 2002 (Exhibit (22)iii,
                          designated as Exhibit ex99-11 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2001).


         (21)     Lounske tepelne hospodarstvi, s.r.o.

                    *i    Notarial Records, dated November 12, 1998, January 6, 1999 and December 2, 1999.  Designated
                          as Exhibit ex99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.


*  Incorporated herein by reference as indicated.



EXHIBITS (Continued)


                   *ii    Founders Deed, dated November 15, 1994, as amended on December 13, 2001. (Exhibit 22 (ii),
                          designated as Exhibit ex99-3 for EDGAR purposes, Form U5S for the fiscal year ended September
                          30, 2002).

         (22)     ENOP, s.r.o.

                    *i    Founders Deed, dated December 19, 1995, as amended on December 13, 2001. (Exhibit 23 (i),
                          designated as Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30,
                          2002).

         (23)     United Energy, a.s.

                    *i    Notarial Record from Prvni severozapadni teplarenska, a.s., dated September 28, 1998.
                          (Exhibit (28) i, designated as Exhibit ex99-3 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2000.)

                   *ii    Notarial Record from Severoceske Teplarny, a.s. dated September 28, 1998.  (Exhibit (28) ii,
                          designated as Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30,
                          2000.)

                  *iii    Court Resolution, dated December 9, 1999.  (Exhibit (28) iii, designated as Exhibit ex99-5
                          for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.)

                   *iv    Court Resolution, dated July 13, 2000.  (Exhibit (28) iv, designated as Exhibit ex99-6 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.)

                     v    Articles of Association, dated April 28, 1992, as amended on June 28, 2001 as amended on June
                          27, 2002, as amended on June 26, 2003 as amended on June 24, 2004. Designated as Exhibit
                          ex99-5 for EDGAR purposes.

         (24)     Horizon LFG, Inc. (formerly Upstate Energy Inc.)

                     i    Restated Certificate of Incorporation of Niagara Energy Trading Inc., dated May 19, 1998.
                          (Exhibit (32)i, designated as Exhibit ex99-9 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 1998).

                    ii    Certificate of Amendment of the Certificate of Incorporation of Upstate Energy Inc., filed
                          April 19, 2004.  Designated as Exhibit ex99-6 for EDGAR purposes.




*  Incorporated herein by reference as indicated.



EXHIBITS (Continued)

                  iii     By-Laws as amended April 1, 2004.  Designated as Exhibit ex99-7 for EDGAR purposes.


         (25)     Roystone Gas Processing Plant Partnership

                    *i    Facility Construction, Ownership and Operating Agreement, dated November 1, 1994.  (Exhibit (33)i,
                          designated as Exhibit ex99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30,
                          1999.)

                   *ii    Ratification and Joinder Agreement, dated September 1, 2002, (Exhibit 26 (ii), designated as
                          Exhibit ex99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).

         (26)     Seneca Energy Canada Inc.

                    *i    Certificate of Amendment and Articles of Amendment changing name of corporation from Player
                          Resources LTD to Seneca Energy Canada Inc., dated September 1, 2002.  (Exhibit (29)i,
                          designated as Exhibit ex99-11 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).

                   *ii    Certificate of Amendment and Registration of Restated Articles dated August 2, 2002. (Exhibit
                          30 (i), designated as Exhibit ex99-14 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2002).

                  *iii    Articles of Amendment dated 8/2/02. (Exhibit 30 (ii), designated as Exhibit ex99-15 for EDGAR
                          purposes, Form U5S for fiscal year ended September 30, 2002).

                   *iv    Certificate of Amendment and Registration of Restated Articles dated 7/29/02. (Exhibit 30
                          (iii), designated as Exhibit ex99-16 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2002).

                    *v    Articles of Amendment dated 7/29/02. (Exhibit 30 (iv),   designated as Exhibit ex99-17 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 2002.

                   *vi    Certificate of Amalgamation and Articles of Amalgamation, dated September 28, 2001 (Exhibit
                          33(i), designated as Exhibit ex99-13 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2001).

                  *vii    By-Laws No. 1, dated January 28, 1998 (Exhibit 33 (ii), designated as Exhibit ex99-14 for
                          EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).

         (27)     Seneca Player Corp.

                    *i    Certificate of Incorporation of JN Acquisition Corp. dated October 26, 1999. (Exhibit 31 (i),
                          designated as Exhibit



*  Incorporated herein by reference as indicated.




EXHIBITS (Continued)

                          ex99-18 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).

                   *ii    Certificate of Amendment of Certificate of Incorporation of Seneca Player Corp. dated
                          December 19, 2001.  (Exhibit 31 (ii), designated as Exhibit ex99-19 for EDGAR purposes, Form
                          U5S for fiscal year ended September 30, 2002).

         (28)     3062782 Nova Scotia Company

                    *i    Certificate of Incorporation dated December 27, 2001. (Exhibit 32 (i), designated as Exhibit
                          ex99-20 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).

                   *ii    Memorandum and Articles of Association of 306782 Nova Scotia Company dated December 27, 2001.
                          (Exhibit 32 (ii) designated as Exhibit ex99-21 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2002).

         (29)     3062783 Nova Scotia Company

                    *i    Certificate of Incorporation dated December 27, 2001. (Exhibit 33 (i), designated as Exhibit
                          ex99-22 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).

                   *ii    Memorandum and Articles of Association of 3062783 Nova Scotia Company dated December 27,
                          2001. (Exhibit 33 (ii), designated as Exhibit ex99-23 for EDGAR purposes, Form U5S for fiscal
                          year ended September 30, 2002).

         (30)     Horizon Energy Bulgaria Ltd.

                    *i    Articles of Association of One-Man Limited Liability Company dated August 25, 2001. (Exhibit
                          35 (i), designated as Exhibit ex99-26 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2002).

         (31)     Sofia Energy EAD

                    *i    Articles of Association of Sofia Energy EAD, Joint-Stock Company dated July 7, 2003.
                          (Exhibit (34)i, designated as Exhibit ex99-12 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003).

         (32)     Montenero Energia S.r.l.

                    *i    Incorporation of a Limited Liability Company dated November 6, 2002.  (Exhibit (35)i,
                          designated as Exhibit ex99-13 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).

                    ii    By-Laws.  Designated as Exhibit ex99-8 for EDGAR purposes.




*  Incorporated herein by reference as indicated.



EXHIBITS (Continued)

         (33)     Kane Gas Processing Plant

                    *i    Facility Construction, Ownership and Operating Agreement between Elkhorn Field Services
                          Company and Five Oaks, Inc. and East Resources, Inc. and Seneca Resources Corporation.  This
                          document is subject to a request for confidential treatment under Rule 104 (b).

         (34)     Toro Partner LLC

                    *i    Certificate of Formation of Toro Partner LLC dated April 30, 2003.  (Exhibit (37)i designated
                          as Exhibit ex99-14 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).

                   *ii    Limited Liability Company Agreement of Toro Partner LLC dated May 27, 2003.  (Exhibit (37)ii,
                          designated as Exhibit ex99-15 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).

         (35)     Toro Partners, LP

                    *i    Amended and Restated Certificate of Limited Partnership of Toro Partners, LP dated June 4,
                          2003.  (Exhibit (38)i, designated as Exhibit ex99-16 for EDGAR purposes, Form U5S for fiscal
                          year ended September 30, 2003).

                   *ii    Amended and Restated Agreement of Limited Partnership of Toro Partners, LP (undated).
                          (Exhibit (38)ii, designated as Exhibit ex99-17 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003).

         (36)     Toro Energy of Michigan, LLC

                    *i    Certificate of Formation of Toro Energy of Michigan, LLC dated September 7, 1999.  (Exhibit
                          (39)i designated as Exhibit ex99-18 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                   *ii    Certificate of Amendment of Toro Energy of Michigan, LLC dated July 24, 2003.  (Exhibit
                          (39)ii designated as Exhibit ex99-19 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                  *iii    Amended and Restated Limited Liability Company Agreement of Toro Energy of Michigan, LLC
                          dated June 3, 2003.  (Exhibit (39)iii, designated as Exhibit ex99-20 for EDGAR purposes, Form
                          U5S for fiscal year ended September 30, 2003).

         (37)     Toro Energy of Ohio-Statewide, LLC

                    *i    Certificate of Formation of Toro Energy of Ohio-Statewide, LLC dated September 9, 1999.
                          (Exhibit (40)i, designated as Exhibit ex99-21 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003).


*  Incorporated herein by reference as indicated.



EXHIBITS (Continued)

                  *ii     Certificate of Amendment of Toro Energy of Ohio-Statewide, LLC dated July 24, 2003.  (Exhibit
                          (40)ii, designated as Exhibit ex99-22 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                  *iii    Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio-Statewide,
                          LLC dated June 3, 2003, (Exhibit (40)iii, designated as Exhibit ex99-23 for EDGAR purposes,
                          Form U5S for fiscal year ended September 30, 2003).

         (38)     Toro Energy of Ohio, LLC

                    *i    Certificate of Formation of Toro Energy of Ohio, LLC dated September 1, 1999.  (Exhibit
                          (41)i, designated as Exhibit ex99-24 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                   *ii    Certificate of Amendment of Toro Energy of Ohio, LLC dated July 24, 2003.  (Exhibit (41)ii,
                          designated as Exhibit ex99-25 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).

                  *iii    Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio, LLC dated
                          June 3, 2003.  (Exhibit (41)iii, designated as Exhibit ex99-26 for EDGAR purposes, Form U5S
                          for fiscal year ended September 30, 2003).

         (39)     Toro Energy of Kentucky, LLC

                    *i    Certificate of Formation of Toro Energy of Kentucky, LLC dated September 1, 1999.  (Exhibit
                          (42)i, designated as Exhibit ex99-27 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                   *ii    Certificate of Amendment of Toro Energy of Kentucky, LLC dated July 24, 2003.  (Exhibit
                          (42)ii, designated as Exhibit ex99-28 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                  *iii    Amended and Restated Limited Liability Company Agreement of Toro Energy of Kentucky, LLC
                          dated June 3, 2003.  (Exhibit (42)iii, designated as Exhibit ex99-29 for EDGAR purposes, Form
                          U5S for fiscal year ended September 30, 2003).

         (40)     Toro Energy of Missouri, LLC

                    *i    Articles of Organization of Toro Energy of Missouri, LLC dated July 21, 1999.  (Exhibit
                          (43)i, designated as Exhibit ex99-30 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                   *ii    Change of Registered Agent/Registered Office, filed July 30, 2003.  (Exhibit (43)ii,
                          designated as Exhibit ex99-31 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).


*  Incorporated herein by reference as indicated.




EXHIBITS (Continued)

                  *iii    Amended and Restated Regulations of Toro Energy of Missouri, LLC dated June 23, 2003.
                          (Exhibit (43)iii, designated as
                          Exhibit ex99-32 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).

         (41)     Toro Energy of Maryland, LLC

                    *i    Articles of Organization of Toro Energy of Maryland, LLC dated August 3, 1999.  (Exhibit
                          (44)i, designated as Exhibit ex99-33 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                   *ii    Change of Registered Agent/Registered Office, filed July 30, 2003.  (Exhibit (44)ii,
                          designated as Exhibit ex99-34 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).

                  *iii    Amended and Restated Regulations of Toro Energy of Maryland, LLC dated June 23, 2003.
                          (Exhibit (44)iii, designated as Exhibit ex99-35 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003).

         (42)     Toro Energy of Indiana, LLC

                    *i    Articles of Organization of Toro Energy of Indiana, LLC dated November 14, 2000.  (Exhibit
                          (45)i, designated as Exhibit ex99-36 for EDGAR purposes, Form U5S for fiscal year ended
                          September 30, 2003).

                   *ii    Articles of Amendment to the Articles of Organization of Toro Energy of Indiana, LLC dated
                          August 14, 2001.  (Exhibit (45)ii, designated as Exhibit ex99-37 for EDGAR purposes, Form U5S
                          for fiscal year ended September 30, 2003).

                  *iii    Change of Registered Agent/Registered Office, filed July 30, 2003.  (Exhibit (45)iii,
                          designated as Exhibit ex99-38 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).

                   *iv    Amended and Restated Regulations of Toro Energy of Indiana,  LLC dated June 23, 2003.
                          (Exhibit (45)iv, designated as Exhibit ex99-39 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003).

         (43)     Toro Energy of Ohio-American, LLC

                    *i    Articles of Organization of Toro Energy of Ohio-American,  LLC dated February 16, 2003.
                          (Exhibit (46)i, designated as Exhibit ex99-40 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003).

                   *ii    Change of Registered Agent/Registered Office, filed July 30, 2003.  (Exhibit (46)ii,
                          designated as Exhibit ex99-41 for EDGAR purposes, Form U5S for fiscal year ended September
                          30, 2003).


* Incorporated herein by reference as indicated.



EXHIBITS (Continued)


                  *iii    Amended and Restated Regulations of Toro Energy of Ohio-American,  LLC dated June 23, 2003.
                          (Exhibit (46)iii, designated as Exhibit ex99-42 for EDGAR purposes, Form U5S for fiscal year
                          ended September 30, 2003).

         (44)     ESPC, LLC

                    *i    Articles of Organization of ESPC, LLC dated January 22, 2003.  (Exhibit (47)i, designated as
                          Exhibit ex99-43 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).

                   *ii    Certificate of Amendment of the Articles of Organization of ESPC, LLC dated February 3,
                          2003.  (Exhibit (47)ii, designated as Exhibit ex99-44 for EDGAR purposes, Form U5S for fiscal
                          year ended September 30, 2003).

                  *iii    Operating Agreement of ESPC, LLC dated February 6, 2003. (Exhibit (47)iii, designated as
                          Exhibit ex99-45 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).

         (45)     SCPC, LLC

                    *i    Articles of Organization of SCPC, LLC dated February 3, 2003.  (Exhibit (48)i, designated as
                          Exhibit ex99-46 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).


                   *ii    Operating Agreement of SCPC, LLC dated February 6, 2003.  (Exhibit (48)ii, designated as
                          Exhibit ex99-47 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).

         (46)     Empire State Pipeline

                    *i    Second Amended and Restated Operating Agreement between St. Clair Pipeline Company Inc. and
                          Empire State Pipeline Company, Inc. dated September 27, 1996.  (Exhibit (49)i, designated as
                          Exhibit ex99-48 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003).

C. Indentures

         *   Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving
             Trust Company) (Exhibit 2(b) in File No. 2-51796).

         *   Third Supplemental Indenture dated as of December 1, 1982, to Indenture dated as of October 15, 1974,
             between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a)(4) in File No.
             33-49401).




* Incorporated herein by reference as indicated.



EXHIBITS (Continued)

         *   Eleventh Supplemental Indenture dated as of May 1, 1992, to Indenture dated as of October 15, 1974,
             between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(b), Form 8-K dated
             February 14, 1992 in File No. 1-3880).

         *   Twelfth Supplemental Indenture dated as of June 1, 1992, to Indenture dated as of October 15, 1974,
             between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(c), Form 8-K dated
             June 18, 1992 in File No. 1-3880).

         *   Thirteenth Supplemental Indenture dated as of March 1, 1993, to Indenture dated as of October 15, 1974,
             between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a)(14) in File No.
             33-49401).

         *   Fourteenth Supplemental Indenture dated as of July 1, 1993, to Indenture dated as of October 15, 1974,
             between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4.1, Form 10-K for
             fiscal year ended September 30, 1993 in File No. 1-3880).

         *   Fifteenth Supplemental Indenture dated as of September 1, 1996 to Indenture dated as of October 15, 1974,
             between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4.1, Form 10-K for
             fiscal year ended September 30, 1996 in File No. 1-3880).

         *   Indenture dated as of October 1, 1999 between the Company and the Bank of New York (Exhibit 4.1, Form 10-K
             for the fiscal year ended September 30, 1999 in File No. 1-3880).

         *   Officers Certificate Establishing Medium-Term Notes dated October 14, 1999 (Exhibit 4.2, Form 10-K for the
             fiscal year ended September 30, 1999 in File No. 1-3880).

         *   Amended and Restated Rights Agreement dated as of April 30, 1999 between National Fuel Gas Company and
             HSBC Bank USA (Exhibit 10.2, Form 10-Q for the quarterly period ended March 31, 1999 in File No. 1-3880).

         *   Cerificate of Adjustment, dated September 7, 2001, to the Amended and Restated Rights Agreement dated as
             of April 30, 1999, between the Company and HSBC Bank USA (Exhibit 4, Form 8-K dated September 7, 2001 in
             File No 1-3880).

         *   Officers Certificate establishing 6.50% notes due 2022, dated September 18, 2002 (Exhibit 4, Form 8-K
             dated October 3, 2002 in File No. 1-3880).

         *   Officers Certificate establishing 5.25% notes due 2013, dated February 18, 2003 (Exhibit 4, Form 10-Q for
             the quarterly period ended March 31, 2003 in File No. 1-3880).

   D.    *   Tax Allocation Agreement pursuant to Rule 45(c) (Exhibit D, designated as Exhibit ex99-27 for EDGAR
             purposes, Form U5S for fiscal year ended September 30, 2002.



* Incorporated herein by reference as indicated.



EXHIBITS (Concluded)

   E.     *(1)    Employee Relocation Manual filed pursuant to Rule 48(b) (Exhibit E(1), designated as Exhibit ex99-9 for
                  EDGAR purposes, Form U5S for fiscal year ended September 30, 1997).


          *(2)    National Fuel Employee Computer Purchase Program filed pursuant to Rule 48(b).  (Exhibit E(2), designated
                  as Exhibit ex99-15 for EDGAR purposes, Form U5S for fiscal year ended  September 30, 1998).

           (3)    Independence Pipeline Company Unaudited Financial Statements for the quarter and year-to-date period ended
                  December 31, 2003 and for the year-to-date period ended March 31, 2004 filed pursuant to Rule 16.
                  These documents are subject to a request for confidential treatment under Rule 104(b).

   F.             Schedules supporting items of this report - None.

   G.     *(1)   Organization chart showing relationship to United Energy, a.s., a foreign utility company.  (Exhibit
                 G (2), designated as Exhibit ex99-17 for EDGAR purposes, Form U5S for fiscal year ended September 30,
                 2001.)

          *(2)   Organization chart showing relationship to Horizon Power, Inc., an exempt wholesale generator.
                 (Exhibit G (3), designated as Exhibit ex99-18 for EDGAR purposes, Form U5S for fiscal year ended
                 September 30, 2001.)

   H.      (1)   United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003.  Designated as Exhibit ex99-9
                 for EDGAR purposes.

           (2)   Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003.
                 Designated as Exhibit ex99-10 for EDGAR purposes.

           (3)   Horizon Power, Inc. Audited Financial Statements for the Fiscal Year Ended September 30, 2004.  These
                 financial statements will be filed by amendment when available.

           (4)   Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2004.  Designated as
                 Exhibit ex99-11 for EDGAR purposes.






* Incorporated herein by reference as indicated.


S I G N A T U R E

        The undersigned System company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935.

 

NATIONAL FUEL GAS COMPANY




By: /s/R. J. Tanski
R. J. Tanski, Treasurer
and Principal Financial Officer


By: /s/K. M. Camiolo
K. M. Camiolo, Controller
and Principal Accounting Officer

Date: January 28, 2005

EXHIBIT INDEX


 ex99-1          National Fuel Gas Supply Corporation By-Laws.

 ex99-2          Highland Forest Resources, Inc. By-Laws.

 ex99-3          Data-Track Account Services, Inc. By-Laws.

 ex99-4          National Fuel Resources, Inc. By-Laws.

 ex99-5          United Energy, a.s. Articles of Incorporation.

 ex99-6          Horizon LFG, Inc. Certificate of Amendment of the Certificate of Incorporation of Upstate Energy, Inc.

 ex99-7          Horizon LFG, Inc. By-Laws.

 ex99-8          Montenero Energia S.r.l. By-Laws.

 ex99-9          United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003.

 ex99-10         Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003.

 ex99-11         Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2004.


EX-99.B 2 ex99-1.htm BYLAWS OF NATIONAL FUEL GAS SUPPLY CORPORATION National Fuel Gas Supply Corporation Bylaws, As Amended 4/1/04

ex99-1

Adopted: 4/3/89
Amended: 12/31/92

04/01/04

BYLAWS

NATIONAL FUEL GAS SUPPLY CORPORATION

ARTICLE I — OFFICES

    1.        The registered office of the corporation shall be at 1100 State Street, Erie, Pennsylvania.

    2.        The corporation may also have offices at such other places as the Board of Directors may from time to time appoint or the business of the corporation may require.

ARTICLE II — SEAL

        The Corporate seal shall have inscribed thereon the name “NATIONAL FUEL GAS SUPPLY CORPORATION.”

ARTICLE III — SHAREHOLDERS’ MEETING

    1.        Place. Meetings of the shareholders shall be held at the office of the corporation at 1100 State Street, Erie, Pennsylvania, or at such other place designated by the Board of Directors.

    2.        Time. The annual meeting of the shareholders shall be held on the third Thursday of February in each year beginning in 1990, or at such time designated by the Board of Directors.

    3.        Business. At the annual meeting, the Shareholders shall elect a Board of Directors, transact such business as is specified in the notice of meeting, and transact such other business as may properly be brought before the meeting.

    4.        Quorum. The presence of shareholders in person or by proxy entitled to cast at least a majority of the votes which all shareholders are entitled to cast on the particular matter shall constitute a quorum for the purpose of considering such matter. The acts of those shareholders shall be the acts of the shareholders. The shareholders present at a duly organized meeting can continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Adjournment or adjournments of any annual or special meeting may be taken, but any meeting at which directors are to be elected shall be adjourned only from day to day until such directors have been elected. If a meeting cannot be organized because a quorum has not attended, those present may adjourn the meeting to such time and place as they may determine. But, in the case of any meeting called for the election of directors, those who attend the second adjourned meeting, although less than quorum, may elect directors.

    5.        Proxies. Every shareholder entitled to vote at a meeting of the shareholders may authorize another person or persons to act for him by proxy. Every proxy shall be executed in writing by the shareholder and filed with the Secretary of the corporation. A proxy, unless coupled with an interest, shall be revocable at will, but the revocation shall not be effective until notice has been given to the Secretary. No proxy shall be valid after 11 months from the date of its execution unless coupled with an interest, in which case the proxy shall last as long as the interest lasts, unless otherwise specified in the proxy. Death or incapacity shall not automatically revoke a proxy. But notice to the Secretary before the proxy is exercised, shall revoke a proxy. A shareholder shall not sell his vote or execute a proxy to any person for any sum of money or anything of value.

    6.        Voting. Elections for directors need not be by ballot, except upon demand made by a shareholder at the election and before the voting begins. Cumulative voting for directors shall not be allowed. Each shareholder shall be entitled to one vote per share unless otherwise specified on the face of the share certificate.

    7.        Notice. Written notice of the annual meeting shall be given to each shareholder entitled to vote thereat, at least five days prior to the meeting.

    8.        Judge of Elections. In advance of any meeting of shareholders, the Board of Directors may appoint a judge of elections who need not be a shareholder. If a judge of elections is not appointed, the chairman shall make the appointment at the meeting, if requested to do so by any shareholder. On request of the chairman of the meeting, or of any shareholder or his proxy, the judge shall make a report in writing of any matter determined by him, and execute a certificate of any fact he finds. No person who is a candidate for office shall act as a judge.

    9.        Special Meeting. Special meeting of the shareholders may be called at any time by the President, the Board of Directors or 20% of the shares entitled to vote at that meeting. If a special meeting is called, the Secretary shall fix the date of the meeting within 60 days of the call and give notice at least five days before the meeting.

    10.        Business. Business transacted at all special meetings shall be confined to the subjects stated in the call unless all shareholders entitled to vote are present and consent.

    11.        Shareholders List. The officer or agent having charge of the transfer books shall make, at least five days before such meeting of shareholders, a complete list of the shareholders entitled to vote at the meeting, arranged in alphabetical order, with the address of and the number of shares held by each, which list shall be subject to inspection by any shareholder at any time during usual business hours and at the time and place of the meeting. The original share ledger or transfer book shall be prima facie evidence as to who are the shareholders entitled to examine such list or to vote in person or by proxy, at any meeting of shareholders.

ARTICLE IV — DIRECTORS

    1.        Board of Directors. The business of this corporation shall be managed by its Board of Directors (the “Board”), consisting of not less than three nor more than nine directors, the exact number of which shall be determined by the Board from time to time. The directors need not be residents of this Commonwealth or shareholders in the corporation. They shall be elected by the shareholders, at the annual meeting of shareholders of the corporation, and each director shall be elected for the term of one year, and until his successor shall be elected and shall qualify.

    2.        Power. In addition to the powers conferred upon them by these Bylaws, the Board may exercise all the powers of the corporation and do all lawful acts that are not by statute, the Articles of Incorporation or these Bylaws required to be done by the shareholders.

    3.        Place of Meeting. The meetings of the Board may be held at such place within this Commonwealth, or elsewhere, as determined by the Board.

    4.        Annual Meeting. An organizational meeting of the newly elected Board shall be held each year at the same place and promptly after the annual meeting of shareholders. At that meeting, the Board shall elect the executive officers of the corporation for the ensuing year and may transact any other business.

    5.        Regular Meetings. Regular meetings of the Board shall be held after two days notice at the registered office of the corporation, or on such other notice or at such other place as shall be determined by the Board.

    6.        Special Meetings. Special meetings of the Board may be called by the President or majority of directors on two days’ notice to each director or on such other notice as shall be determined by the Board.

    7.        Quorum. A majority of the directors in office shall be necessary to constitute a quorum for the transaction of business, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board. Any action which may be taken at a meeting of the Board may be taken without a meeting if a written consent, setting forth the action so taken, is signed by all of the directors and is filed with the Secretary of the corporation.

    8.        Compensation. Directors, as such, shall not receive any salary for their services, but by resolution of the Board, a fixed sum and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the Board or a committee of the Board. A director may serve the corporation in any other capacity and receive compensation for those services.

    9.        Reliance. In performing his duties, a director shall be entitled to rely in good faith on information, opinions, reports or statements, including financial statements and other financial data, prepared or presented by any of the following:

  (a) Officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented.

  (b) Counsel, public accountants or other persons as to matters which the director reasonably believes to be within the professional or expert competence of such person.

  (c) A committee of the Board upon which he does not serve, as to matters within its designated authority, which committee the director reasonably believes to merit confidence.

A director shall not be considered to be acting in good faith if he has knowledge concerning the matter in question that would cause his reliance to be unwarranted.

    10.        Factors to Consider. In discharging the duties of their respective positions, the Board, committees of the Board and individual directors may, in considering the best interests of the corporation, consider the effects of any action upon shareholders, employees, suppliers and customers of the corporation and the communities in which offices of the corporation are located, and all other pertinent factors.

    11.        Presumptions. Unless there is a breach of fiduciary duty, lack of good faith or self-dealing, actions taken by the Board or any failure to take action shall be presumed to be in the best interests of the corporation.

    12.        Non-Liability. A director of the corporation shall not be personally liable for monetary damages for any action taken, or any failure to take any action, unless:

  (a) the director has breached or failed to perform the duties of his office as required by laws relating to the standard of care and justifiable reliance; and

  (b)         the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness.

This relief from personal liability shall not apply to:

  (a)         the responsibility or liability of a director pursuant to any criminal statute; or

  (b)         the liability of a director for the payment of taxes pursuant to local, state or federal law.

    13.        Standard of Care. A director of the corporation shall be a fiduciary to the corporation and shall perform his duties as a director including his duties as a member of any committee of the Board upon which he serves in good faith and in a manner he reasonably believes to be in the best interests of the corporation, with such care including reasonable inquiry, skill and diligence as a person of ordinary prudence would use under similar circumstances. It is intended that the duty of a director will be the same as that specified in the Director’s Liability Act of Pennsylvania. If the statutory provisions are changed then this article shall automatically be changed to conform to the Act.

ARTICLE V — COMMITTEE

    1.        Executive Committee. The Board may appoint two or more of its members to constitute an Executive Committee which shall have and exercise all of the authority of the Board in the management of the corporation between meetings of the Board or at any meeting of the Board when a quorum is not present.

    2.        Term. The members of the Executive Committee shall serve as determined by the Board.

    3.        Ratification. All actions of the Executive Committee shall be reported to the Board at or before its next meeting and shall be subject to revocation or amendment by the Board. If, however, the action is not revoked or amended, it shall be considered as ratified and approved.

    4.        Other Committees. The Board may establish such other committees as it deems necessary for the transaction of business and specify and define the powers, duties and members of each of the committees.

ARTICLE VI — OFFICERS

    1.        Executive Officers. The executive officers of the corporation shall be chosen by the Board and shall be a President, Secretary, and Treasurer. The Board may also choose such other officers and agents as it shall deem necessary, who shall hold their offices for such terms and shall have such authority and shall perform such duties as are prescribed by the Board. Any number of offices may be held by the same person. It is not necessary for the officers to be directors.

    2.        Salaries. The salaries of all officers and agents of the corporation shall be fixed by the Board or shareholders.

    3.        Term. The officers of the corporation shall hold office for one year and until their successors are chosen and have qualified. Any officer or agent elected or appointed by the Board may be removed by the Board whenever, in its judgment, the best interests of the corporation will be served.

    4.        President. The President shall be the chief executive officer of the corporation. He shall preside at all meetings of the shareholders and directors. He shall have general and active management of the business of the corporation. He shall see that all orders and resolutions of the Board are carried into effect. He shall execute bonds, mortgages and other contracts requiring a seal, under the seal of the corporation. He shall be ex-officio a member of all committees, and shall have the general powers and duties of supervision and management usually vested in the office of President of a corporation.

    5.        Secretary. The Secretary shall attend all sessions of the Board and all meetings of the shareholders, and record all the votes of the corporation and the minutes of all its transactions in a book to be kept for that purpose. He shall give notice of all meetings of the shareholders and of the Board, and shall perform such other duties as may be prescribed by the Board or President. He shall keep in safe custody the corporate seal of the corporation, and when authorized by the Board, affix the same to any instrument requiring it.

    6.        Treasurer. The Treasurer shall have custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation, and shall keep the moneys of the corporation in a separate account to the credit of the corporation. He shall disburse the funds of the corporation as may be ordered by the Board, taking proper vouchers for such disbursements, and shall render to the President and Directors, at the regular meetings of the Board, or whenever they may require it, an account of all his transactions as Treasurer and of the financial condition of the corporation.

    7.        Controller. The Controller shall see that adequate records of all assets, liabilities, and transactions of the corporation are maintained; that adequate audits thereof are currently and regularly made, and in conjunction with other officers initiate and enforce measures and procedures whereby the business of the corporation shall be conducted with maximum efficiency, safety and economy. The Controller shall also perform all such other duties as usually pertain to the office of Controller. The Controller shall be in all matters subject to the control of and responsible to the Board of Directors alone.

ARTICLE VII — VACANCIES

    1.        Officers. If the office of any officer becomes vacant for any reason, the Board may choose a successor, who shall hold office for the unexpired term of that office.

    2.        Directors. Vacancies in the Board, including vacancies resulting from an increase in the number of directors, shall be filled by a majority of the remaining members of the Board, though less than a quorum, and each person so elected shall be a director until his successor is elected by the shareholders, who may make such election at the next annual meeting of the shareholders or at any special meeting called for that purpose. Also, to the extent legally permissible, shareholders may fill such vacancies.

ARTICLE VIII

INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS

    1.        Actions Involving Directors, Officers or Employees. The corporation shall indemnify any person who was or is a party (other than a party plaintiff suing on his own behalf or in the right of the corporation), or who is threatened to be made such a party, to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (including, but not limited to, an action by or in the right of the corporation) by reason of the fact that he is or was a director, officer or employee of the corporation, or is or was serving at the request of the corporation as a director, officer or employee of another corporation, partnership, joint venture, employee benefit plan trust or other enterprise.

        The corporation shall indemnify against expenses (including attorneys’ fees), judgments, fines, ERISA fines and taxes and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding; provided, that no such person shall be indemnified (a) except to the extent that the aggregate of losses to be indemnified under the provisions of this Article VIII exceeds the amount of such losses for which the director, officer or employee is insured pursuant to any directors and officers liability insurance policy maintained by the corporation; (b) in respect to remuneration paid to such person if it shall be finally adjudged that such remuneration was in violation of law; (c) on account of such person’s conduct which is finally adjudged to have been knowingly fraudulent, deliberately dishonest or constituted willful misconduct or recklessness; and (d) if it shall be finally adjudged that such indemnification is not lawful.

    2.        Actions Involving Agents. The corporation may indemnify any person who was or is a party (other than a party plaintiff suing on his own behalf or in the right of the corporation), or who is threatened to be made such a party, to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (including, but not limited to, an action by or in the right of the corporation) by reason of the fact that he is an agent of the corporation, or is or was serving at the request of the corporation as an agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, against expenses (including attorneys’ fees), judgments, fines, ERISA fines and taxes and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding, all to the fullest extent permitted by law.

    3.        Determination of Right to Indemnification in Certain Instances.

              (a)        Any indemnification under Section 1 of this Article VIII (unless ordered by a court) shall be made by the corporation unless a determination is reasonably and promptly made that indemnification of the director, officer or employee is not proper in the circumstances because he has not satisfied the conditions set forth in such Section 1. Such determination shall be made (i) by the Board by a majority vote of a quorum consisting of directors who were not parties to such action, suit or proceeding, or (ii) if such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, or (iii) by the shareholders; provided that no such determination shall preclude an action brought in an appropriate court to challenge such determination.

             (b)        Any indemnification under Section 2 of this Article VIII (unless ordered by a court) shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the agent is proper in the circumstances because he has met the applicable standard of conduct set forth in Section 2. Such determination shall be made (i) by the Board by a majority vote of a quorum consisting of directors who where not parties to such action, suit or proceeding, or (ii) if such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, or (iii) by the shareholders.

    4.        Advance Payment of Expenses. Expenses incurred by defending a civil or criminal action, suit or proceeding shall be paid by the corporation in advance of the final disposition of such action, suit or proceeding upon request by the director, officer, employee or agent and receipt of an agreement by or on behalf of the director, officer, employee or agent to repay such amount, unless it shall ultimately be determined that he is entitled to be indemnified by the corporation as authorized in this Article VIII.

    5.        Successful Defense. Notwithstanding any other provisions of this Article VIII, to the extent that a director, officer, employee or agent of the corporation has been successful on the merits or otherwise (including the dismissal of an action without prejudice or the settlement of an action without admission of liability) in defense of any action, suit or proceeding referred to in Sections 1 or 2 of this Article VIII, or in defense of any claim, issue or matter therein, he shall be indemnified against expenses including attorneys’ fees actually and reasonably incurred by him in connection therewith, including his claim for indemnification against the corporation.

    6.        Not Exclusive Right. The indemnification provided by this Article VIII shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, bylaw, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in an official capacity and as to action in another capacity while holding such office. Without limiting the generality of the foregoing, in the event of conflict between the provisions of this Article VIII and the provisions, of any agreement adopted by the shareholders between the corporation on the one hand, and any director, officer, employee or agent of the corporation on the other, providing for indemnification, the terms of such agreement shall prevail. Any indemnification, whether required under this Bylaw or permitted by statute or otherwise, shall continue as to a person who has ceased to be a director, officer or employee and shall inure to the benefit of the heirs, executors and administrators of such person.

    7.        Insurance. The Board shall have the power to cause the corporation to purchase and maintain on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under the provisions of this Article VIII.

    8.        Subsidiaries of Corporation. For the purposes of this Article VIII, (a) any officer, director, employee or agent of the corporation who shall serve as an officer, director, employee or agent of any other corporation, joint venture, trust, employee benefit plan or other enterprise of which the corporation, directly or indirectly, is or was a stockholder or creditor, or in which the corporation is or was in any way interested, or (b) any officer, director, employee or agent of any subsidiary corporation, venture, trust or other enterprise wholly owned by the corporation, shall be deemed to be serving as such director, officer, employee or agent at the request of the corporation, unless the Board shall determine otherwise. In all instances where any person shall serve as a director, officer, employee or agent of another corporation, joint venture, trust, employee benefit plan or other enterprises of which the corporation is or was a stockholder or creditor, or in which it is or was otherwise interested, if it is not otherwise established that such person is or was serving as such director, officer, employee, or agent at the request of the corporation, the Board may determine whether such service is or was at the request of the corporation, and it shall not be necessary to show any actual or prior request for such service.

ARTICLE IX — MISCELLANEOUS PROVISIONS

    1.        Checks. All checks or demands for money and notes of the corporation shall be signed by such officer or officers as the Board may from time to time designate.

    2.        Fiscal Year. The fiscal year shall end on September 30 of each year.

    3.        Notices. Whenever written notice is required to be given to any person, it may be given personally, by sending a copy through the mail, or by telegram, charges prepaid, to his address appearing on the books of the corporation. If the notice is sent by mail or telegraph, it shall be deemed to have been given to the person entitled thereto when deposited in the United States mail or with a telegraph office for transmission to such person. Such notice shall specify the place, day and hour of the meeting and, in the case of a meeting of shareholders, the general nature of the business to be transacted.

    4.        Waiver of Notices. Whenever any written notice is required by statute, or by the Articles or Bylaws of this corporation, a waiver thereof in writing, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Except in the case of a special meeting of shareholders, neither the business to be transacted at nor the purpose of the meeting need be specified in the waiver of notice of such meeting. Attendance of a person, either in person or by proxy, at any meeting shall constitute a waiver of notice of such meeting, except where a person attends a meeting for the express purpose of objecting to the transaction of any business because the meeting was not lawfully called or convened.

    5.        Teleconferences. One or mote directors or shareholders may participate in a meeting of the Board, of a committee of the Board or of the shareholders, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other.

    6.        Action by Consent. Except as otherwise provided in the Articles or Bylaws of this corporation, any action which may be taken at a meeting of the shareholders of a class of shareholders may be taken without a meeting, if a consent in writing, setting forth the action so taken, shall be signed by all of the shareholders who would be entitled to vote at a meeting for such purpose and shall be filed with the Secretary of the Corporation.

ARTICLE X — ANNUAL STATEMENT

        The President and Board shall present at each annual meeting of shareholders a full and complete statement of the business affairs of the corporation for the preceding year. Such statement shall be prepared and presented in whatever manner the Board deems advisable and need not be verified by a certified public accountant.

ARTICLE XI - AMENDMENTS

    1.        These Bylaws may be amended or repealed by the vote of shareholders entitled to cast at least a majority of the votes which all shareholders are entitled to cast thereon, at any regular or special meeting of the shareholders, duly convened after notice to the shareholders of that purpose.

    2.        These Bylaws may be in whole or in part amended or repealed by the Board, subject always to the right and power of the shareholders to change such action.

EX-99.B 3 ex99-2.htm BYLAWS OF HIGHLAND FOREST RESOURCES, INC. By-Laws of Highland Forest Resources, Amd. 04/01/04

ex99-2

Amended 5/26/00
Amended 4/1/04

BY-LAWS

OF

HIGHLAND FOREST RESOURCES, INC.

(f/k/a Highland Land & Minerals, Inc.)


ARTICLE ONE
OFFICES

        Section 1.   Principal Office.      The principal office of this corporation shall be in the County of Erie, State of New York.

        Section 2.   Other Offices.      The corporation may have such other offices and places of business, within or without the State of New York, as may be determined by the Directors.

ARTICLE TWO
SHAREHOLDERS

        Section 1.   Place of Meetings.      Meetings of the shareholders may be held at such place or places, within or without the State of New York, as shall be fixed by the President and stated in the notice of the meeting.

        Section 2.   Annual Meeting.      The annual meeting of shareholders for the election of Directors and the transaction of such other business as may properly come before the meeting shall be held on such business day and time as the President shall designate.

        Section 3.   Notice of Annual Meeting.      Written notice of the annual meeting shall be given to each shareholder entitled to vote, at least ten (10) days but no more than fifty (50) days prior to the meeting.

        Section 4.   Special Meetings.      Special meetings of the shareholders for any purpose or purposes may be called by the President or Board of Directors and must be called by the President or Secretary upon receipt by either of them of the written request of the holders of twenty-five (25) percent of the stock then outstanding and entitled to vote.

        Section 5.   Notice of Special Meeting.      Written notice of a special meeting, stating the time, place and purpose or purposes thereof, shall be given to each shareholder entitled to vote, at least ten (10) days but no more than fifty (50) days prior to the meeting. The notice shall also be set forth at whose direction it is being issued.

        Section 6.  Quorum.     At any meeting of the shareholders, the holders of record of a majority of the shares of stock then entitled to vote shall constitute a quorum for all purposes, except as otherwise provided by law or the Certificate of Incorporation.

        Section 7.   Voting.      Except as may be otherwise provided by the Certificate of Incorporation, at each meeting of the shareholders, every holder of stock then entitled to vote may vote in person or by proxy and shall have one vote for each share registered in his or her name.

        Section 8.   Adjourned Meetings.      Any meeting of shareholders may be adjourned to a designated time and place by a vote of a majority in interest of the shareholders present in person or by proxy and entitled to vote, even though less than a quorum is so present. No notice of such an adjourned meeting need be given, other than by announcement at the meeting, and any business may be transacted that might have been transacted at the meeting as originally called.

        Section 9.   Action by Written Consent of Shareholders.      Whenever by any provision of statute or of the Certificate of Incorporation or of these By-Laws, shareholders are required or permitted to take any action by vote, such action may be taken without a meeting on written consent setting forth the action so taken, signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.

        Section 10.   Notice of Action Regarding Payment for Shares.      If, at any meeting, action is proposed to be taken that would, if taken, entitle shareholders to receive payment for shares, the notice of such meeting shall include a statement of that purpose and to that effect.

ARTICLE THREE
DIRECTORS

        Section 1.   Powers; Number; Qualifications. The business and affairs of the corporation shall be managed by or under the direction of the Board of Directors, except as may be otherwise provided by law or in the Certificate of Incorporation. The Board of Directors shall consist of one or more members, the number thereof to be determined from time to time by the Board of Directors. Directors need not be shareholders of the corporation.

        Section 2.   Powers. The Board of Directors may adopt such rules and regulations for the conduct of business of its meetings, the exercise of its powers and the management of the affairs of the corporation, as it may deem proper, not inconsistent with the laws of the State of New York, the Certificate of Incorporation or these By-Laws.

        In addition to the powers and authorities by these By-Laws expressly conferred upon it, the Board of Directors may exercise all such powers of the corporation and do such lawful acts and things as are not by statute or by the Certificate of Incorporation or by these By-Laws directed or required to be exercised or done by the shareholders.

        Section 3.   Meeting, Quorum, Meeting by Telephone, Action Without Meeting. Meetings of the Board of Directors may be held at any place, either within or without the State of New York, provided a quorum be in attendance. Except as may be otherwise provided by the Certificate of Incorporation or by the corporate laws of the State of New York, a majority of the Directors in office shall constitute a quorum at any meeting of the Board and the vote of a majority of a quorum of Directors shall constitute the act of the Board.

        The Board of Directors may hold an annual meeting, without notice, immediately after the annual meeting of the shareholders. Regular meetings of the Board of Directors may be held without notice at such time and at such place as shall from time to time be determined by the Board of Directors. The Chairman of the Board (if any) or the President or Secretary may call, and at the request of any two Directors must call, a special meeting of the Board of Directors by appropriate notice. Five days’ notice is required when given personally or by telegraph, cable, e-mail or facsimile transmission to each Director.

        Any one or more members of the Board of Directors or any Committee thereof may participate in a meeting of such Board or any Committee by means of a conference telephone or similar communication equipment allowing all persons participating in the meeting to hear each other at the same time. Participation by such means shall constitute presence in person at a meeting.

        Any action required or permitted to be taken by the Board of Directors or any Committee thereof may be taken without a meeting if all members of the Board or the Committee consent in writing to the adoption of a resolution authorizing the action. The resolution and the written consents thereto by the members of the Board or Committee shall be filed with the minutes of the proceedings of the Board or Committee.

        Section 4.   Resignation, Vacancies, Removal. Any Director may resign at any time by giving written notice to the President or the Secretary. Such resignation shall take effect at the time stated therein. Except as otherwise provided in the Certificate of Incorporation or in the following paragraph, vacancies occurring in the membership of the Board of Directors, from whatever cause arising, may be filled by a majority vote of the remaining Directors, though less than a quorum.

        Any one or more of the Directors may be removed for cause by action of the Board of Directors taken by a vote of a majority of all Directors then in office at any regular or special meeting of the Board.

        Section 5.   Committees. The Board of Directors, by resolution adopted by a majority of the entire Board, may designate from its members an Executive Committee or other committee or committees, each consisting of one or more members, and each of which shall have such powers and authority (to the extent permitted by law) as may be provided in said resolution.

        Section 6.   Compensation. Directors, as such, shall not receive any stated salary for their services, but by resolution of the Board of Directors a fixed fee and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the Board or of any committee of the Board, provided that nothing herein contained shall be construed to preclude any Director from serving the corporation in any other capacity and receiving compensation therefor.

ARTICLE FOUR
OFFICERS

        Section 1.   Executive Officers. The executive officers of the corporation shall be a President, one or more Vice-Presidents, a Treasurer and a Secretary, each of whom shall be elected annually by the Directors and shall hold office for such term as may be prescribed by the Board. All vacancies occurring among any of the offices may be filled by the Board of Directors or, in its discretion, the Board may leave unfilled at its pleasure any of the foregoing offices except the offices of President, Treasurer and Secretary. Any officer may be removed at any time with or without cause by the Board of Directors.

        Section 2.   Other Officers. The Board of Directors may appoint such other officers and agents with such powers and duties, as it shall deem necessary.

        Section 3.   The President. The President shall, in the absence or non-election of a Chairman of the Board, preside at all meetings of the shareholders and Directors and perform such other duties as from time to time may be assigned to him or her by the Board of Directors. The President shall be the Chief Executive Officer of the corporation and shall perform all of the duties of the Chairman of the Board as well as those of President.

        Section 4.   The Vice-President. The Vice-President, or if there be more than one, the Vice-Presidents (who may have such designations, if any, as the Board of Directors may determine), in the order of their seniority or in any other order determined by the Board shall, in the absence or disability of the President, exercise the powers and perform the duties of the President, and each Vice-President shall exercise such other duties as may be prescribed by the President or the Board.

        Section 5.   The Treasurer. The Treasurer shall have custody of all funds, securities and other valuable effects of the corporation; he shall receive and give receipts and acquittances for moneys paid in on account of the corporation; he shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Directors; he shall pay out of the funds on hand all bills, payrolls and other just debts of the corporation, of whatever nature, upon maturity; he shall enter regularly, in books to be kept by him for that purpose, full and accurate accounts of all moneys received and paid out by him on account of the corporation; and he shall perform all other duties incident to the office of Treasurer and as may be prescribed by the Board.

        Section 6.   The Secretary. The Secretary shall keep the minutes of all proceedings of the Board of Directors and of the shareholders; he shall attend to the giving and serving of all notices to the shareholders and Directors or other notice required by law or by these By-Laws; he shall affix the seal of the corporation to deeds, contracts and other instruments in writing requiring a seal, when duly signed on behalf of the corporation; he shall have charge of the certificate books and stock books and such other books and papers as the Board may direct; and he shall perform all other duties incident to the office of Secretary as the Board may prescribe.

ARTICLE FIVE
CAPITAL STOCK

        Section 1.   Form and Execution of Certificates. Certificates of stock shall be in such form as required by the laws of the State of New York and as shall be adopted by the Board of Directors. They shall be numbered and registered in the order issued, shall be signed by the President or a Vice-President and by the Secretary or the Treasurer and shall be sealed with the corporate seal or a facsimile thereof. If such a certificate is countersigned by a transfer agent or registered by a registrar, the signatures of any such officers may be facsimile.

        Section 2.   Transfer. Transfer of shares shall be made only upon the books of the corporation by the registered holder in person or by attorney, duly authorized, and upon surrender of the certificate or certificates for such shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer. A record shall be made of each transfer, and whenever a transfer shall be made for collateral security, and not absolutely, it shall be so expressed in the entry of the transfer on the record of shareholders of the corporation.

        Section 3.   Lost or Destroyed Certificates. The holder of any certificate representing shares of stock of the corporation may notify the corporation of any loss, theft or destruction thereof, and the Board of Directors may thereupon, in its discretion, cause a new certificate for the same number of shares, to be issued to such holder upon satisfactory proof of such loss, theft or destruction, and the deposit of indemnity by way of bond or otherwise, in such form and amount and with such surety or sureties as the Board of Directors may require, to indemnify the corporation against loss or liability by reason of the issuance of such new certificates.

        Section 4.   Record Date. In lieu of closing the books of the corporation, the Board of Directors may fix in advance a date, not exceeding fifty days nor less than ten days, as the record date for the determination of shareholders entitled to receive notice of, or to vote at, any meeting of shareholders, or to consent to any proposal without a meeting, or for the purpose of determining shareholders entitled to receive payment of any dividends, or allotment of any rights, or for the purpose of any other action.

ARTICLE SIX
MISCELLANEOUS

        Section 1.   Dividends. Subject to the applicable provisions of the Certificate of Incorporation, the Board of Directors may declare dividends from time to time upon the capital stock of the corporation from the surplus or net profits available therefor.

        Section 2.   Fiscal Year. The fiscal year of the corporation shall begin on the 1st day of October in each calendar year and end on the 30th day of September of the next succeeding calendar year.

        Section 3.   Checks, Notes, etc. Checks, notes, drafts, bills of exchange and orders for payment of money shall be signed or endorsed in such manner as shall be determined by the Board of Directors.

        The funds of the corporation shall be deposited in such bank or trust company, and checks drawn against such funds shall be signed in such manner as may be determined from time to time by the Board of Directors.

        Section 4.   Notice and Waiver of Notice. Any notice required to be given under these By-Laws may be waived by the person entitled thereto, in writing, by telegram, cable, e-mail, facsimile transmission or radiogram, and the presence of any person at a meeting shall constitute waiver of notice thereof as to such person.

        Whenever any notice is required by these By-Laws to be given, personal notice is not meant unless expressly so stated; and any notice so required shall be deemed to be sufficient if given by depositing it in a post office or post box in a sealed postpaid wrapper, addressed to such shareholder, officer or director, at such address as appears on the books of the corporation, and such notice shall be deemed to have been given on the day of such deposit.

ARTICLE SEVEN
INDEMNIFICATION AND INSURANCE

        Section 1.   Indemnification. Any person made a party to an action or proceeding, by reason of the fact that he or she, his or her testator or his or her intestate is or was a director or officer of the corporation, or of any other corporation, domestic or foreign, that he or she, his or her testator or intestate served in any capacity at the request of the corporation, shall be indemnified by the corporation against the expenses (including attorney’s fees, judgments, fines and amounts paid in settlement) actually incurred by him or her as a result of such action or proceeding, or any appeal therein, to the full extent permissible.

        Section 2.   Insurance. The corporation may purchase and maintain insurance to indemnify the corporation and the directors and officers to the extent permitted.

ARTICLE EIGHT
AMENDMENTS

        Section 1.   Authority. The authority to make, alter, amend or repeal these By-Laws is expressly vested in the Board of Directors, subject to the power of the shareholders to change or repeal such By-Laws.

EX-99.B 4 ex99-3.htm BYLAWS OF DATA-TRACK ACCOUNT SERVICES, INC. By-Laws of Data-Track Account Services, Inc.-Amended 4/1/04

ex99-3

Amended 3/28/03
Amended 4/1/04

BY-LAWS

OF

DATA-TRACK ACCOUNT SERVICES, INC.

ARTICLE I

OFFICES

        Section 1.    Principal Office.   The principal office of the corporation shall be in the County of Erie, State of New York.

        Section 2.    Other Offices.    The corporation may have such other offices and places of business, within or without the State of New York, as may be determined by the Directors.

ARTICLE II

SHAREHOLDERS

        Section 1.    Place of Meetings of the shareholders may be held at such place or places, within or without the State of New York, as shall be fixed by the Directors and stated in the notice of the meeting.

        Section 2.    Annual Meeting.   The annual meeting of shareholders for the election of Directors and the transaction of such other business as may properly come before the meeting shall be held at 10:00 a.m., or as soon thereafter as the presiding officer may conveniently direct, on the third Thursday of February in each year (if not a


legal holiday, and if a legal holiday, then at the same hour on the next succeeding business day) or on such other business day as the Board of Directors may fix.

        Section 3.    Notice of Annual Meeting.    Written notice of the annual meeting shall be given to each shareholder entitled to vote, at least ten (10) days but no more than fifty (50) days prior to the meeting.

        Section 4.    Special Meetings.   Special meetings of the shareholders for any purpose or purposes may be called by the President or Board of Directors and must be called by the President or Secretary upon receipt by either of them of the written request of the holders of twenty-five (25) percent of the stock then outstanding and entitled to vote.

        Section 5.    Notice of Special Meeting.   Written notice of a special meeting, stating the time, place and purpose or purposes thereof, shall be given to each shareholder entitled to vote, at least ten (10) days out no more than fifty (50) days prior to the meeting. The notice shall also set forth at whose direction it is being issued.

        Section 6.    Quorum.   At any meeting of the shareholders, the holders of record of a majority of the shares of stock then entitled to vote, shall constitute a quorum for all purposes, except as otherwise provided by law or the Certificate of Incorporation.

        Section 7.    Voting.    Except as may be otherwise provided by the Certificate of Incorporation, at each meeting of the shareholders, every holder of stock then entitled to vote may vote in person or by proxy, and shall have one vote for each share of stock registered in his name.

        Section 8.    Adjourned Meetings.    Any meeting of shareholders may be adjourned to a designated time and place by a vote of a majority in interest of the

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shareholders present in person or by proxy and entitled to vote, even though less than a quorum is so present. No notice of such an adjourned meeting need be given, other than by announcement at the meeting, and any business may be transacted which might have been transacted at the meeting as originally called.

        Section 9.    Action by Written Consent of Shareholders.    Whenever by any provision of statute or of the Certificate of Incorporation or of these By-Laws, shareholders are required or permitted to take any action by vote, such action may be taken without a meeting on written consent setting forth the action so taken, signed by the holders of all outstanding shares entitled to vote thereon.

        Section 10.    Appraisal Rights.   If, at any meeting, action is proposed to be taken which would, if taken, entitle shareholders to receive payment for shares, the notice of such meeting shall include a statement of that purpose and to that effect.

ARTICLE III

DIRECTORS

        Section 1.    Number.    The number of directors of the corporation shall be no less than two (2), who shall hold office for the term of one year and/or until their successors are elected and qualify. The number of Directors may be increased or decreased from time to time by amendment to these By-Laws made by a majority of the Board of Directors or by the shareholders. Directors need not be shareholders.

        Section 2.    Powers.    The Board of Directors may adopt such rules and regulations for the conduct of business of its meetings, the exercise of its powers and the management of the affairs of the corporation, as it may deem proper, not inconsistent

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with the laws of the State of NewYork, the Articles and/or Certificate of Incorporation or these By-Laws.

        In addition to the powers and authorities by these By-Laws expressly conferred upon it, the Board of Directors may exercise all such powers of the corporation and do such lawful acts and things as are not by statute or by the Articles and/or Certificate of Incorporation or by these By-Laws directed or required to be exercised or done by the shareholders.

        Section 3.    Meeting, Quorum, Meeting by Telephone, Action Without Meeting.    Meetings of the Board of Directors may be held at any place, either within or outside the State of New York provided a quorum be in attendance. Except as may be otherwise provided by the Certificate of Incorporation or by the corporate laws of the State of New York, a majority of the Directors in office shall constitute a quorum at any meeting of the Board and the vote of a majority of a quorum of Directors shall constitute the act of the Board.

        The Board of Directors may hold an annual meeting, without notice, immediately after the annual meeting of shareholders. Regular meetings of the Board of Directors may be held without notice at such time and at such place as shall from time to time be determined by the Board of Directors. The Chairman of the Board (if any) or the President or Secretary may call, and at the request of any two Directors, must call a special meeting of the Board of Directors by appropriate notice. Five days’ notice is required when given by mail, or two days’ notice is required when given personally or by telegraph or cable to each Director.

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        Any one or more members of the Board of Directors or any Committee thereof may participate in a meeting of such Board or any Committee by means of a conference telephone or similar communication equipment allowing all persons participating in the meeting to hear each other at the same time. Participation by such means shall constitute presence in person at a meeting.

        Any action required or permitted to be taken by the Board of Directors or any Committee thereof may be taken without a meeting if all members of the Board or the Committee consent in writing to the adoption of a resolution authorizing the action. The resolution and the written consents thereto by the members of the Board or Committee shall be filed with the minutes of the proceedings of the Board or Committee.

        Section 4.    Resignation, Vacancies, Removal.    Any Director may resign at any time by giving written notice to the President or the Secretary. Such resignation shall take effect at the time stated therein. Except as otherwise provided in the Articles and/or Certificate of Incorporation or in the following paragraph, vacancies occurring in the membership of the Board of Directors, from whatever cause arising, may be filled by a majority vote of the remaining Directors, though less than a quorum.

        Any one or more of the Directors may be removed for cause by action of the Board of Directors taken by a vote of a majority of all Directors then in office at any regular or special meeting of the Board.

        Section 5.    Committees.      The Board of Directors, by resolution adopted by a majority of the entire Board, may designate from its members an Executive Committee or other committee or committees, each consisting of three or more members, and each of

-5-


which shall have such powers and authority (to the extent permitted by law) as may be provided in said resolution.

        Section 6.    Compensation.    Directors, as such, shall not receive any stated salary for their services, but by resolution of he Board of Directors a fixed fee and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the Board or of any committee of the Board, provided that nothing herein contained shall be construed to preclude any Director from serving the corporation in any other capacity and receiving compensation therefor.

ARTICLE IV

OFFICERS

        Section 1.    Executive Officers.    The executive officers of the corporation shall be a President, one or more Vice-Presidents, a Treasurer and a Secretary, all of whom shall be elected annually by the Directors and shall hold office for such term as may be prescribed by the Board. All vacancies occurring among any of the offices may be filled by the Board of Directors or, in its discretion, the Board may leave unfilled at its pleasure any of the foregoing offices except the offices of President, Treasurer and Secretary. Any officer may be removed at any time with or without cause by the Board of Directors.

        Section 2.    Other Officers.    The Board of Directors may appoint such other officers and agents with such powers and duties as it shall deem necessary.

        Section 3.    The President.    The President, shall be a member of the Board of Directors, shall, in the absence or non-election of a Chairman of the Board, preside at all meetings of the shareholders and directors and perform such other duties as

-6-


from time to time may be assigned to him by the Board of Directors. In the absence of the Chairman of the Board, or in the event that there is a vacancy in the office of the Chairman, the President shall be the Chief Executive Officer of the corporation and shall perform all of the duties of the Chairman of the Board as well as those of President.

        Section 4.    The Vice-President.    The Vice-President, or if there be more than one, the Vice-Presidents (who may have such designations, if any, as the Board of Directors may determine), in the order of their seniority or in any other order determined by the Board shall, in the absence or disability of the President, exercise the powers and perform the duties of the President, and each Vice-President shall exercise such other powers and perform such other duties as may be prescribed by the President or the Board.

        Section 5.    The Treasurer.    The Treasurer shall have custody of all funds, securities and other valuable effects of the corporation; he shall receive and give receipts and acquittances for moneys paid in on account of the corporation; he shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Directors; he shall pay out of the funds on hand all bills, payrolls and other just debts of the corporation, of whatever nature, upon maturity; he shall enter regularly in books to be kept by him for that purpose, full and accurate accounts of all moneys received and paid out by him on account of the corporation, and he shall perform all other duties incident to the office of Treasurer and as may be prescribed by the Board.

        Section 6.    The Secretary.    The Secretary shall keep the minutes of all proceedings of the Board of Directors and of the shareholders; he shall attend to the giving and serving of all notices to the shareholders and Directors or other notice required

-7-


by law or by these By-Laws; he shall affix the seal of the corporation to deeds, contracts and other instruments in writing requiring a seal, when duly signed on behalf of the corporation; he shall have charge of the certificate books and stock books and such other books and papers as the Board may direct, and he shall perform all other duties incident to the office of Secretary as the Board may prescribe.

ARTICLE V

CAPITAL STOCK

        Section 1.    Form and Execution of Certificates.   Certificates of stock shall be in such form as required by the laws of the State of New York and as shall be adopted by the Board of Directors. They shall be numbered and registered in the order issued; shall be signed by the President or a Vice-President and by the Secretary or the Treasurer and shall be sealed with the corporate seal or a facsimile thereof. When such a certificate is countersigned by a transfer agent or registered by a registrar, the signatures of any such officers may be facsimile.

        Section 2.    Transfer.    Transfer of shares shall be made only upon the books of the corporation by the registered holder in person or by attorney, duly authorized, and upon surrender of the certificate or certificates for such shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer. A record shall be made of each transfer, and whenever a transfer shall be made for collateral security, and not absolutely, it shall be so expressed in the entry of the transfer on the record of shareholders of the corporation.

        Section 3.    Lost or Destroyed Certificates.    The holder of any certificate representing shares of stock of the corporation may notify the corporation of any loss,

-8-


theft or destruction thereof, and the Board of Directors may thereupon, in its discretion, cause a new certificate for the same number of shares, to be issued to such holder upon satisfactory proof of such loss, theft or destruction, and the deposit of indemnity by way of bond or otherwise, in such form and amount and with such surety or sureties as the Board of Directors may require, to indemnify the corporation against loss or liability by reason of the issuance of such new certificates.

        Section 4.    Record Date.    In lieu of closing the books of the corporation, the Board of Directors may fix in advance a date, not exceeding fifty days nor less than ten days, as the record date for the determination of shareholders entitled to receive notice of, or to vote at, any meeting of shareholders, or to consent to any proposal without a meeting, or for the purpose of determining shareholders entitled to receive payment of any dividends, or allotment of any rights, or for the purpose of any other action.

ARTICLE VI

MISCELLANEOUS

        Section 1.    Dividends.    Subject to the applicable provisions of the Articles and/or Certificate of Incorporation, the Board of Directors may declare dividends from time to time upon the capital stock of the corporation from the surplus or net profits available therefor.

        Section 2.    Fiscal Year. The fiscal year of the corporation shall begin on the 1st day of October in each calendar year and end on the 30th day of September of the next succeeding calendar year.

-9-


        Section 3.    Checks, Notes, etc.    Checks, notes, drafts, bills of exchange and orders for the payment of money shall be signed or endorsed in such manner as shall be determined by the Board of Directors.

        The funds of the corporation shall be deposited in such bank or trust company, and checks drawn against such funds shall be signed in such manner, as may be determined from time to time by the Board of Directors.

        Section 4.    Notice and Waiver of Notice.    Any notice required to be given under these By-Laws may be waived by the person entitled thereto, in writing, by telegram, cable or radiogram, and the presence of any person at a meeting shall constitute waiver of notice thereof as to such person.

        Whenever any notice is required by these By-Laws to be given, personal notice is not meant unless expressly so stated; and any notice so required shall be deemed to be sufficient if given by depositing it in a post office or post box in a sealed postpaid wrapper, addressed to such shareholder, officer or director, at such address as appears on the books of the corporation, and such notice shall be deemed to have been given on the day of such deposit.

ARTICLE VII

INDEMNIFICATION AND INSURANCE

        Section 1.    Indemnification.    Any person made a party to an action or proceeding, by reason of the fact that he, his testator or intestate, is or was a director or officer of the corporation, or of any other corporation, domestic or foreign, which he, his testator or intestate served in any capacity at the request of the corporation, shall be indemnified by the corporation against the expenses (including attorney’s fees, judgments,

-10-


fines and amounts paid in settlement) actually incurred by him as a result of such action or proceeding, or any appeal therein, to the full extent permissible.

        Section 2.    Insurance.    The corporation may purchase and maintain insurance to indemnify the corporation and the directors and officers to the extent permitted.

ARTICLE VIII

AMENDMENTS

        Section 1.    As provided in the Articles of the Company, authority to make, alter, amend and repeal the By-Laws of the Company is expressly vested in the Board of Directors, subject to the power of the shareholders to change or repeal such By-Laws.

EX-99.B 5 ex99-4.htm BYLAWS OF NATIONAL FUEL RESOURCES, INC. Amended NFR By-Laws, 2004

ex99-4




BY-LAWS

OF

NATIONAL FUEL RESOURCES, INC.


ARTICLE I

OFFICES

        Section 1.      Principal Office.    The principal office of the corporation shall be in the County of Erie, State of New York.

        Section 2.      Other Offices.    The corporation may have such other offices and places of business, within or without the State of New York, as may be determined by the Directors.


ARTICLE II

SHAREHOLDERS

        Section 1.      Place of Meetings.    Meetings of the shareholders may be held at such place or places, within or without the State of New York, as shall be fixed by the Directors and stated in the notice of the meeting.

        Section 2.      Annual Meeting.    The annual meeting of shareholders for the election of Directors and the transaction of such other business as may properly come before the meeting shall be held at 10:00 a.m., or as soon thereafter as the presiding officer may conveniently direct, on the third Thursday of February in each year (if not a legal holiday, and if a legal holiday, then at the same hour on the next succeeding business day) or on such other business day as the Board of Directors may fix.


-  2  -

        Section 3.      Notice of Annual Meeting.    Written notice of the annual meeting shall be given to each shareholder entitled to vote, at least ten (10) days but no more than fifty (50) days prior to the meeting.

        Section 4.      Special Meetings.    Special meetings of the shareholders for any purpose or purposes may be called by the President or Board of Directors and must be called by the President or Secretary upon receipt by either of them of the written request of the holders of twenty-five (25) percent of the stock then outstanding and entitled to vote.

        Section 5.      Notice of Special Meeting.    Written notice of a special meeting, stating the time, place and purpose or purposes thereof, shall be given to each shareholder entitled to vote, at least ten (10) days but no more than fifty (50) days prior to the meeting. The notice shall also set forth at whose direction it is being issued.

        Section 6.      Quorum.    At any meeting of the shareholders, the holders of record of a majority of the shares of stock then entitled to vote, shall constitute a quorum for all purposes, except as otherwise provided by law or the Certificate of Incorporation.

        Section 7.      Voting.    Except as may be otherwise provided by the Certificate of Incorporation, at each meeting of the shareholders, every holder of stock then entitled to vote may vote in person or by proxy, and shall have one vote for each share of stock registered in his name.


- 3  -

        Section 8.      Adjourned Meetings.    Any meeting of shareholders may be adjourned to a designated time and place by a vote of a majority in interest of the shareholders present in person or by proxy and entitled to vote, even though less than a quorum is so present. No notice of such an adjourned meeting need be given, other than by announcement at the meeting, and any business may be transacted which might have been transacted at the meeting as originally called.

        Section 9.      Action by Written Consent of Shareholders.    Whenever by any provision of statute or of the Certificate of Incorporation or of these By-Laws, shareholders are required or permitted to take any action by vote, such action may be taken without a meeting on written consent setting forth the action so taken, signed by the holders of all outstanding shares entitled to vote thereon.

        Section 10.      Appraisal Rights.    If, at any meeting, action is proposed to be taken which would, if taken, entitle shareholders to receive payment for shares, the notice of such meeting shall include a statement of that purpose and to that effect.


ARTICLE III

DIRECTORS

        Section 1.      Number.     The number of Directors of the Corporation shall be no less than one (1), who shall hold office for the term of one (1) year and/or until its successor is elected


-  4   -

and qualifies. Directors shall be elected at the annual meetings of shareholders. The number of Directors may be increased or decreased from time to time by amendment to these By-Laws made by a majority of the Board of Directors or by the Shareholders. Directors need not be shareholders.

        Section 2.      Powers.    The Board of Directors may adopt such rules and regulations for the conduct of business of its meetings, the exercise of its powers and the management of the affairs of the corporation as it may deem proper, not inconsistent with the laws of the State of New York, the Articles and/or Certificate of Incorporation or these By-Laws.

        In addition to the powers and authorities by these By-Laws expressly conferred upon it, the Board of Directors may exercise all such powers of the corporation and do such lawful acts and things as are not by statute or by the Articles and/or Certificate of Incorporation or by these By-Laws directed or required to be exercised or done by the shareholders.

        Section 3.      Meeting, Quorum, Meeting by Telephone, Action Without Meeting.    Meetings of the Board of Directors may be held at any place, either within or outside the State of New York provided a quorum be in attendance. Except as may be otherwise provided by the Certificate of Incorporation or by the corporate laws of the State of New York, a majority of the Directors in office shall constitute a quorum at any meeting of the Board and the vote of a majority of a quorum of Directors shall constitute the act of the Board.


-  5   -

        The Board of Directors may hold an annual meeting, without notice, immediately after the annual meeting of shareholders. Regular meetings of the Board of Directors may be held without notice at such time and at such place as shall from time to time be determined by the Board of Directors. The Chairman of the Board (if any) or the President or Secretary may call, and at the request of any two Directors, must call a special meeting of the Board of Directors by appropriate notice. Five days’ notice is required when given by mail, or two days’ notice is required when given personally or by telegraph or cable to each Director.

        Any one or more members of the Board of Directors or any Committee thereof may participate in a meeting of such Board or any Committee by means of a conference telephone or similar communication equipment allowing all persons participating in the meeting to hear each other at the same time. Participation by such means shall constitute presence in person at a meeting.

        Any action required or permitted to be taken by the Board of Directors or any Committee thereof may be taken without a meeting if all members of the Board or the Committee consent in writing to the adoption of a resolution authorizing the action. The resolution and the written consents thereto by the members of the Board or Committee shall be filed with the minutes of the proceedings of the Board or Committee.


-  6   -

        Section 4.      Resignation, Vacancies, Removal.    Any Director may resign at any time by giving written notice to the President or the Secretary. Such resignation shall take effect at the time stated therein. Except as otherwise provided in the Articles and/or Certificate of Incorporation or in the following paragraph, vacancies occurring in the membership of the Board of Directors, from whatever cause arising, may be filled by a majority vote of the remaining Directors, though less than a quorum.

        Any one or more of the Directors may be removed for cause by action of the Board of Directors taken by a vote of a majority of all Directors then in office at any regular or special meeting of the Board.

        Section 5.       Committees.    The Board of Directors, by resolution adopted by a majority of the entire Board, may designate from its members an Executive Committee or other committee or committees, each consisting of three or more members, and each of which shall have such powers and authority (to the extent permitted by law) as may be provided in said resolution.

        Section 6.      Compensation.    Directors, as such, shall not receive any stated salary for their services, but by resolution of the Board of Directors a fixed fee and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the Board or of any committee of the Board, provided that nothing herein contained shall be construed to preclude any Director from


-  7   -

serving the corporation in any other capacity and receiving compensation therefor.


ARTICLE IV

OFFICERS

        Section 1.      Executive officers.    The executive officers of the Corporation shall be a President, one or more Vice-Presidents, a Treasurer and a Secretary, all of whom shall be elected annually by the Directors and shall hold office for such term as may be prescribed by the Board. Any two or more offices may be held by the same person. All vacancies occurring among any of the offices may be filled by the Board of Directors or, in its discretion, the Board may leave unfilled at its pleasure any of the foregoing offices. Any officer may be removed at any time with or without cause by the Board of Directors.

        Section 2.      Other Officers.    The Board of Directors may appoint such other officers and agents with such powers and duties as it shall deem necessary.

        Section 3.      The President.    The President, shall be a member of the Board of Directors, shall, in the absence or non-election of a Chairman of the Board, preside at all meetings of the shareholders and directors and perform such other duties as from time to time may be assigned to him by the Board of Directors. In the absence of the Chairman of the Board, or in the event that there is a vacancy in the office of the Chairman, the President shall be the Chief Executive


- 8  -

Officer of the corporation and shall perform all of the duties of the Chairman of the Board as well as those of President.

        Section 4.      The Vice-President.    The Vice-President, or if there be more than one, the Vice-Presidents (who may have such designations, if any, as the Board of Directors may determine), in the order of their seniority or in any other order determined by the Board shall, in the absence or disability of the President, exercise the powers and perform the duties of the President, and each Vice-President shall exercise such other powers and perform such other duties as may be prescribed by the President or the Board.

        Section 5.      The Treasurer.    The Treasurer shall have custody of all funds, securities and other valuable effects of the corporation; he shall receive and give receipts and acquittances for moneys paid in on account of the corporation; he shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Directors; he shall pay out of the funds on hand all bills, payrolls and other just debts of the corporation, of whatever nature, upon maturity; he shall enter regularly in books to be kept by him for that purpose, full and accurate accounts of all moneys received and paid out by him on account of the corporation, and he shall perform all other duties incident to the office of Treasurer and as may be prescribed by the Board.


- 9  -

        Section 6.      The Secretary.    The Secretary shall keep the minutes of all proceedings of the Board of Directors and of the shareholders; he shall attend to the giving and serving of all notices to the shareholders and Directors or other notice required by law or by these By-Laws; he shall affix the seal of the corporation to deeds, contracts and other instruments in writing requiring a seal, when duly signed on behalf of the corporation; he shall have charge of the certificate books and stock books and such other books and papers as the Board may direct, and he shall perform all other duties incident to the office of Secretary as the Board may prescribe.


ARTICLE V

CAPITAL STOCK

        Section 1.      Form and Execution of Certificates.

Certificates of stock shall be in such form as required by the laws of the State of New York and as shall be adopted by the Board of Directors. They shall be numbered and registered in the order issued; shall be signed by the President or a Vice-President and by the Secretary or the Treasurer and shall be sealed with the corporate seal or a facsimile thereof. When such a certificate is countersigned by a transfer agent or registered by a registrar, the signatures of any such officers may be facsimile.


-  10   -

        Section 2.      Transfer.    Transfer of shares shall be made only upon the books of the corporation by the registered holder in person or by attorney, duly authorized, and upon surrender of the certificate or certificates for such shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer. A record shall be made of each transfer, and whenever a transfer shall be made for collateral security, and not absolutely, it shall be so expressed in the entry of the transfer on the record of shareholders of the corporation.

        Section 3.      Lost or Destroyed Certificates.    The holder of any certificate representing shares of stock of the corporation may notify the corporation of any loss, theft or destruction thereof, and the Board of Directors may thereupon, in its discretion, cause a new certificate for the same number of shares, to be issued to such holder upon satisfactory proof of such loss, theft or destruction, and the deposit of indemnity by way of bond or otherwise, in such form and amount and with such surety or sureties as the Board of Directors may require, to indemnify the corporation against loss or liability by reason of the issuance of such new certificates.

        Section 4.      Record Date.    In lieu of closing the books of the corporation, the Board of Directors may fix in advance a date, not exceeding fifty days nor less than ten days, as the record date for the determination of shareholders entitled to receive notice of, or to vote at, any meeting of shareholders, or to consent to any proposal without a meeting, or for the purpose of determining


shareholders entitled to receive payment of any dividends, or allotment of any rights, or for the purpose of any other action.


ARTICLE VI

MISCELLANEOUS

        Section 1.      Dividends.    Subject to the applicable provisions of the Articles and/or Certificate of Incorporation, the Board of Directors may declare dividends from time to time upon the capital stock of the corporation from the surplus or net profits available therefor.

        Section 2.      Fiscal Year.    The fiscal year of the corporation shall begin on the last day of October in each calendar year and end on the 30th day of September of the next succeeding calendar year.

        Section 3.      Checks, Notes, etc..    Checks, notes, drafts, bills of exchange and orders for the payment of money shall be signed or endorsed in such manner as shall be determined by the Board of Directors.

        The funds of the corporation shall be deposited in such bank or trust company, and checks drawn against such funds shall be signed in such manner, as may be determined from time to time by the Board of Directors.

        Section 4.      Notice and Waiver of Notice.    Any notice required to be given under these By-Laws may be waived by the person entitled thereto, in writing, by telegram, cable or radiogram, and


-  12   -

the presence of any person at a meeting shall constitute waiver of notice thereof as to such person.

        Whenever any notice is required by these By-Laws to be given, personal notice is not meant unless expressly so stated; and any notice so required shall be deemed to be sufficient if given by depositing it in a post office or post box in a sealed postpaid wrapper, addressed to such shareholder, officer or director, at such address as appears on the books of the corporation, and such notice shall be deemed to have been given on the day of such deposit.


ARTICLE VII

INDEMNIFICATION AND INSURANCE

        Section 1.      Indemnification.    Any person made a party to an action or proceeding, by reason of the fact that he, his testator or intestate, is or was a director or officer of the corporation, or of any other corporation, domestic or foreign, which he, his testator or intestate served in any capacity at the request of the corporation, shall be indemnified by the corporation against the expenses (including attorney’s fees, judgments, fines and amounts paid in settlement) actually incurred by him as a result of such action or proceeding, or any appeal therein, to the full extent permissible.

        Section 2.      Insurance.    The corporation may purchase and maintain insurance to indemnify the corporation and the directors and officers to the extent permitted.


-  13   -

ARTICLE VIII

AMENDMENTS

        Section 1.    As provided in the Articles of the Company, authority to make, alter, amend and repeal the By-Laws of the Company is expressly vested in the Board of Directors, subject to the power of the shareholders to change or repeal such By-Laws.

EX-99 6 ex99-5.htm ARTICLES OF ASSOCIATION OF UNITED ENERGY, A.S. United Energy a.s. Articles of Association

ex99-5

                 United Energy a.s., with its registered office in Most - Komorany,
                                    Teplarenska 2, postal code 434 03
---------------------------------------------------------------------------------------------------------------------------------------



                                                          Board of Directors

                                                      of the joint stock company

                                                          United Energy, a.s.


                                       pursuant to Article 41(5) of the Articles of Association


                                                               executed


                                     the unabridged Articles of Association of United Energy, a.s.
                                               seated at Most - Komorany, Teplarenska 2,
                                                          postal code 434 03
                                               approved by the Founder on April 28, 1992



                                              as follows from changes and amendments made

                                    by the Ordinary General Meeting's decision on October 15, 1992,
                                    by the Ordinary General Meeting's decision on January 21, 1993,
                                     by the Ordinary General Meeting's decision on July 28, 1993,
                                      by the Ordinary General Meeting's decision on May 27, 1994,
                                 by the Extraordinary General Meeting's decision on December 20, 1995,
                                      by the Ordinary General Meeting's decision on May 31, 1996,
                                      by the Ordinary General Meeting's decision on May 28, 1997,
                                 by the Extraordinary General Meeting's decision on February 20, 1998,
                                     by the Ordinary General Meeting's decision on June 24, 1998,
                                 by the Extraordinary General Meeting's decision on September 28, 1998
                                 and by the Extraordinary General Meeting's decision on June 29, 2000,
                               on the basis of other legal facts (Section 173(4) of the Commercial Code)
                with an execution of the valid full Articles of Association by the Board of Directors on April 26, 2001
                                    by a decision of the Ordinary General Meeting on June 28, 2001
                                    by a decision of the Ordinary General Meeting on June 27, 2002
                                    by a decision of the Ordinary General Meeting on June 26, 2003
                                  and by a decision of the Ordinary General Meeting on June 24, 2004



                                             A R T I C L E S  O F  A S S O C I A T I O N

                                            of the joint stock company United Energy, a.s.
                            with its registered seat at Most - Komorany, Teplarenska 2, postal code 434 03
                                                   dated April 28, 1992, as amended
- ---------------------------------------------------------------------------------------------------------------------------------------

                                                             CHAPTER O N E

                                                          GENERAL PROVISIONS

                                                               Article 1
                                              Commercial Name and the seat of the Company

(1)      Commercial Name: United Energy, a.s.

(2)      Company identification number: 46 70 81 97

(3)       Seat: Most - Komorany, Teplarenska 2, postal code 434 03

(4)      Legal form of the legal entity: joint stock company

(5)      Tax identification number: 206 -46708197

(6)      The Company has been established for an indefinite period of time.

(7)      The  Company  was formed on May 1, 1992 and is recorded in part B,  insert 242 of the  Commercial  Register,  at the  District
         Court in Usti nad Labem, as the competent Registration Court.


                                                               Article 2
                                                  Company Scope of Business Activity

(1)      The Company scope of business activity includes:

         1.       Generation of electricity.

         2.       Electricity trade.

         3.       Generation of heat.

         4.       Distribution of heat.

         5.       Generation  of heat and  distribution  of heat which is not  subject to license,  realized  from heat  sources  and  installed
                  capacity over 50 kW per one source.

         6.       Engineering activity in capital construction.

         7.       Waste management (except the dangerous waste).

         8.       Business activity in dangerous waste management.

         9.       Providing software and hardware and software counseling.

         10.      Road truck transport.

         11.      Road passenger transport.

         12.      Revisions and tests of specified pressure equipments.

         13.      Accommodation services.

         14.      Activity of business, financial, organizational and economic advisors.

         15.      Bookkeeping.

         16.      Services in administration management and organizational and economic services for physical and legal persons.

         17.      Services in the field of occupational safety and hygiene.

         18.      Wholesale trade.

         19.      Specialized retail trade.

         20.      Warehousing and manipulation with freight.

         21.      Real estate activity.

         22.      Washing, ironing, pressing, repair and maintenance of clothing, home textiles and personal goods.

         23.      Technical/Organizational activity in fire protection.

         24.      Graphical and drawing activities.

         25.      Service and assembly of metering devices.

         26.      Lease and lending of movables.

         27.      Data processing, databanks services and networks administration.

         28.      Activity of technical advisers in environmental and ecological areas.

         29.      Intermediation of business.

         30.      Intermediation of services.

         31.      Treatment and distribution of industrial water.

         32.      Production of construction materials and products.



(2)      The Company, as an entrepreneur, undertakes business activity:

a)       based on Act on Business  Conditions  and Public  Administration  in the Energy  Sectors and on  Amendment  to Other Laws (the
         "Energy  Act"),  No.  458/2000  Coll.,  as  amended  (items 1 through 4 of  Paragraph  1 of this  Article of the  Articles  of
         Association),

b)       based on Act No.  455/1991  Coll.,  the Act to Regulate  Trades (Trade Act),  as amended,  in respect to items 5 through 32 of
         paragraph 1 of this Article of the Articles of Associations.

                                                             CHAPTER T W O

                                               THE COMPANY REGISTERED CAPITAL AND SHARES

                                                               Article 3
                       The Company registered capital and the extent to which it has been paid up and
                       the method of paying up the issue price of shares including the consequences of
                                 breaching the duty to pay up the subscribed shares on time

(1)      The total value of Company's  registered  capital is CZK  1,912,932,200  (in words one billion nine hundred and twelve million
         nine hundred thirty two thousand two hundred Czech Crowns).

(2)      The extent to which the  registered  capital has been paid up in the amount  mentioned  in  paragraph 1 of this Article of the
         Articles of Association: 100 per cent.

(3)      At every increase of the registered  capital,  the share premium and 50 per cent of the nominal value of shares  subscribed by
         monetary  contributions and all nonmonetary  (in-kind)  investment  contribution have to be paid up prior to their record into
         the Commercial Register.  The remaining shares subscribed by monetary  contributions have to be paid no later than in one year
         from the record of the increase of registered capital into the Commercial Register.

(4)      If the  subscriber  does not pay the  issue  rate of  subscribed  shares  or its due  part,  he is  called  on by the Board of
         Directors to pay it in allowed time of 60 days from delivery of the notice.

(5)      When the duty to pay the issue rate of subscribed  shares or its due part is breached,  the subscriber  shall pay delay charge
         in the amount of 20 per cent (in words: twenty per cent)  of the due amount per year.


                                                               Article 4
                                                                Shares

(1)      The Company  registered capital mentioned in Article 3 Paragraph 1 is distributed into 10,072,541 shares (in words ten million
         seventy two thousand five hundred forty one shares).

(2)      Type of shares: common stock; no special rights are connected with these shares.

(3)      Form of shares: bearer shares.

(4)      Value of shares:  the Company  registered  capital is divided into 1,006,309 (in words: one million six thousand three hundred
         nine) shares with the nominal  value CZK 1,000 (in words:  one  thousand  Czech  Crowns) and into  9,066,232  (in words:  nine
         million  sixty six  thousand  two hundred  thirty two) shares  with the  nominal  value CZK 100 (in words:  one hundred  Czech
         Crowns).

(5)      The sum of share nominal values corresponds to the amount of the Company registered capital.

(6)      Number of votes  connected  with one share:  to one share with nominal value CZK 1,000 (in words one thousand Czech Crowns) is
         connected  the right to apply 10 votes (in words ten votes) at the General  Meeting,  to one share with nominal  value CZK 100
         (in words one hundred Czech Crowns) is connected the right to apply 1 vote (in words: one vote).

(7)      Form of shares: uncertificated shares.

(8)      The shares are accepted to be traded in public. The following ISIN was assigned to the shares as the listed securities:

         a)      ISIN: CS0008458659 to the shares with the nominal value of CZK 1,000 (in words: one thousand Czech Crowns),

         b)       ISIN: CZ0005113308 to the shares with the nominal value of CZK 100 (in words: one hundred Czech Crowns)

(9)      The bearer shares are unrestrictedly  transferable.  The rights attached to an uncertificated  bearer share are exercised by a
         person recorded in files of uncertificated securities pursuant to a specific act.


                                                               Article 5
                                                     List of Company shareholders

The list of shareholders  owning  uncertificated  Company shares is substituted by the files of uncertificated  securities  recorded in
compliance with a specific act by the Securities Center (Securities Issuer Register).



                                                           CHAPTER T H R E E

                                                INCREASE AND REDUCTION OF THE COMPANY
                                                           REGISTERED CAPITAL
                                              (CHANGES IN THE COMPANY REGISTERED CAPITAL)

                                                               Article 6
                                               Increasing the Company Registered Capital

(1)      The increase of the Company registered capital is governed by the provision of Section 202 et seq of the Commercial Code.

(2)      The Company can increase the registered capital as follows:

         (a)      increase of registered capital by subscription of new shares,

         (b)      by a conditional increase of registered capital,

         (c)      by the increase of registered capital from own Company sources,

         (d)      by a combined increase of registered capital,

         (e)      by increase of registered capital by decision of the Board of Directors.

(3)      General  Meeting or the Board of Directors  decides on the increase of  registered  capital based on delegation by the General
         Meeting in compliance with the Commercial Code and the Articles of Association.

(4)      The effects of the increase of registered capital start on the day of the record of its amount into the Commercial Register.

(5)      The terms and the procedure of the conditional  increase of registered capital is governed by the provision of Section 160 and
         Section  207 of the  Commercial  Code.  If the General  Meeting  decided to issue  convertible  or  priority  bonds,  it shall
         simultaneously  accept the resolution on the increase of registered  capital in such extent, in which convertible  rights from
         convertible bonds or priority rights from priority bonds can be asserted.

(6)      The Board of Directors can be authorized by a resolution of the General Meeting,  to decide,  under the terms specified by the
         Commercial Code and the Articles of  Association,  on the increase of registered  capital by means of a share  subscription or
         from the  Company's  equity,  with  exception of retained  profit,  but by no more than  one-third  of the existing  amount of
         registered  capital in the time when the  General  Meeting  authorized  the Board of  Directors  to decide on the  increase of
         registered  capital  ("the  authorization  to increase the  registered  capital").  The Board of Directors'  authorization  to
         increase the  registered  capital  replaces  the  decision of the General  Meeting to increase  the  registered  capital.  The
         authorization  must specify  nominal  value,  type,  form and format of shares that shall be issued to increase the registered
         capital.  The Board of Directors,  within the scope of such authorization,  may increase the registered capital even more than
         once, if the total amount of such  registered  capital  increase does not exceed the fixed limit. If the Board of Directors is
         authorized to decide on the increase of the  registered  capital by repayment of issue price of shares by means of nonmonetary
         contributions, the authorization to increase registered capital must also contain the specification,  which Company body shall
         decide on the  valuation  of a  nonmonetary  contribution  based on an expert  opinion,  such  expert or experts  having  been
         appointed pursuant to Section 59(3) of the Commercial Code.

(7)      A  notarial  deed  shall be made on the Board of  Directors'  decision.  The  Board of  Directors  decision  to  increase  the
         registered  capital is recorded into the Commercial  Register.  An authorization to increase  registered  capital shall not be
         recorded into the Commercial  Register.  The provisions of Sections 203 through 209 of the Commercial  Code shall apply to the
         procedure to increase registered capital pursuant to Paragraph 6 of this Article as appropriate.

(8)      The authorization to increase the registered  capital may be conferred for a period of up to five years after the day when the
         General Meeting, which resolved to authorize the increase of registered capital, was held.


                                                               Article 7
                                   Rules of the Procedure of the Company Registered Capital Increase

The following rules have to be observed at registered capital increase

a)       the General Meeting decides on the increase of the registered capital based on the Board of Directors' proposal,  or the Board
         of Directors based on the authorization of the General Meeting,

b)       the invitation to, or notice of, a General Meeting shall also include,  in addition to the particulars under section 184(5) of
         the Commercial Code, at least the information under Section 202(2) to (4) of the Commercial Code.


c)       by 30 days from the resolution of the General  Meeting,  the Board of Directors shall file an application for its entry in the
         Commercial Register,

d)       resolution on the entry shall be published by the Board of Directors  without undue delay after its entry into the  Commercial
         Register,

e)       resolution of the General Meeting on increase of the registered capital is performed by the Board of Directors,

f)       in case of breach of the duty to pay the issue rate of subscribed  shares the  subscriber  pays the due interest in accordance
         with Article 3 Paragraph 5 of the Articles of Association,

g)       the Board of Directors  shall file an application  for entry of the new amount of the  registered  capital into the Commercial
         Register. The effects of the registered capital increase start on the day of such entry.


                                                               Article 8
                                              Reduction of the Company Registered Capital

(1)      The reduction of the Company  registered  capital is possible only based on the decision of the General Meeting.  Reduction of
         the registered capital is governed by the provisions of Sections 211 through 216b of the Commercial Code.

(2)      The Company can reduce its registered capital as follows:

         a)       by decreasing the nominal value of shares and interim certificates,

         b)       by withdrawing shares from circulation on the basis of a drawing of lots,

         c)       by withdrawal of shares from circulation on the basis of a public proposal,

         d)       by abandonment of a share issue.

(3)      The value of the  Company  registered  capital  can not be reduced  under the level set by law,  CZK  2,000,000  (in words two
         million Czech Crowns).

(4)      The reduction of the registered capital may not impair the creditors' ability to recover their receivables.


                                                               Article 9
                                   Rules of the Procedure of the Company Registered Capital Reducing

(1)      On the Company  registered  capital  reducing by withdrawing  shares from the market the procedure  shall follow the following
         rules:

         a)       based on drawing (Section 213b of the Commercial Code) the procedure is as follows:

                  -        the Company shall issue an order to number shares to the Securities Center and simultaneously  shall ask for
                           a statement from the registry of uncertificated securities  which must also contain the share numbers,

                  -        no later than ten days from the day when the order for shares  numbering was issued,  the Board of Directors
                           shall secure the choice of shares by drawing,

                  -        the course and results of the choice by drawing  with  publishing  of drawn  shares  shall be certified by a
                           notarial deed,

                  -        the Board of Directors  shall  announce the results of drawing in the way set by law and by Article 14(5) of
                           the  Articles of  Association  and the  announcement  has to comprise the  particulars  mentioned in Section
                           213b(3) of the Commercial Code,

                  -        the  Company  is  obliged  to pay at  least  such a  consideration  for the  drawn  shares,  which is set in
                           accordance with the rules set in Section 186a(4) of the Commercial Code,

                  -        the Board of Directors  shall inform the  Securities  Center about the drawing  results  together with the order to cancel the
                           numbering of not drawn shares,

                  -        the Board of Directors shall file an application for entry of such new value of Company  registered  capital in the Commercial
                           Register,

                  -        after the new value of the Company  registered  capital has been entered into the Commercial  Register,  the
                           Board of Directors  shall issue an order to the  Securities  Center to cancel the drawn  shares.  An extract
                           from the Commercial Register  documenting entry of the reduced amount of the Company registered capital must
                           be enclosed with the company's order,

         b)       based on the public offer (Section 213c of the Commercial Code) the procedure is as follows:

                  -        Shares may be  withdrawn  from the market on the basis of a public  offer for the  purchase of shares or for
                           the withdrawal of shares from the market without a consideration,

                  -        the  provisions of Section 183a of the  Commercial  Code shall apply to the public offer for the purchase of
                           shares and public offer for free share withdrawal from the market as appropriate,

                  -        if this offer is accepted,  the Board of Directors  shall give an order to the Securities  Center to hold up
                           rights to dispose with those shares, regarding which the offer was accepted,

                  -        the Board of Directors,  based on authorization of the General Meeting,  shall issue proposal for the record
                           of the new value of the  registered  capital into the  Commercial  Register in such an extent,  in which the
                           public offer of contract was accepted by the shareholders,

                  -        after the  record of the  registered  capital  value into the  Commercial  Register  the Board of  Directors
                           without undue delay shall give an order to the Securities Center to cancel shares,  which were bought by the
                           Company based on the public offer of contract.


(2)      The procedure of Company registered capital reducing is as follows:

         a)       the General Meeting decides about the registered capital reducing based on the Board of Directors' proposal,

         b)       also the particulars  mentioned in Section 211(1) of the Commercial Code are mentioned in the announcement on holding
                  the General Meeting in addition to the particulars mentioned in Section 184(5) of the Commercial Code,

         c)       The resolution of the General Meeting to reduce the Company's  registered  capital shall be entered in the Commercial
                  Register.  The  petition  for such  entry  shall be filed by the Board of  Directors  within  30 days of the  General
                  Meeting's resolution,

         d)       the  resolution  on the entry is published by the Board of  Directors  in the way  specified in Article  14(5) of the
                  Articles of Association, without undue delay after its entry into the Commercial Register,

         e)       the resolution of the General Meeting to reduce the registered capital  is exercised by the Board of Directors,

         f)       The Board of Directors is obligated to notify in writing,  within 30 days after the resolution of the General Meeting
                  on reduction of registered  capital became  effective  with respect to third parties,  the extent of the reduction of
                  registered  capital  to all known  creditors  whose  claims  against  the  company  arose  prior to the day when this
                  resolution became effective with respect to third parties,  the aforesaid  notification  including also an invitation
                  to submit  their claims  under  provision of Section  215(3) of the  Commercial  Code.  The Board of Directors  shall
                  secure the publishing of General  Meeting's  decision on the registered  capital  reduction  after its entry into the
                  Commercial Register,  at least twice with a thirty-day interval by the way mentioned in Article 14(5) of the Articles
                  of  Association,  and with a notice for  creditors  that they  announce  their  receivables  pursuant to provision of
                  Section 215(3) of the Commercial Code.

         g)       the Board of Directors  shall file an application for entry of such  registered  capital  reduction in the Commercial
                  Register in the deadline mentioned in Section 216 of the Commercial Code.


                                                            CHAPTER F O U R

                                                         SHAREHOLDERS' RIGHTS

                                                              Article 10
                            The right to participate in the General Meeting and to vote at it, the method of
                                                                voting

(1)      The shareholders exercise their rights concerning the Company management at the General Meeting.

(2)      A shareholder is entitled to vote in the General Meeting,  either  personally or by means of an individual or a legal entity -
         a proxy - based on the power of attorney with  shareholder's  authenticated  signature under the  simultaneous  meeting of the
         conditions of shareholder's participation in the General Meeting (Article 18 of the Articles of Association).

(3)      At the General Meeting,  shareholders vote by means of ballots specifying their respective number of shares,  which are signed
         by them. The details of voting are mentioned in General Meeting Procedural and Voting Order, approved by the General Meeting.



                                                            CHAPTER F I V E

                                                            COMPANY BODIES

                                                              Article 11
                                                            Company Bodies


(1)      The Company bodies are as follows:

         a)       the General Meeting,

         b)       the Board of Directors,

         c)       the Supervisory Board.


(2)      The General Meeting can establish  other Company bodies by changing the Articles of Association.  In such case the decision of
         the General Meeting must contain a specified  number of its members,  and also  specification of their powers and way of their
         decision making.




                                                               Division I

                                                            GENERAL MEETING


                                                              Article 12
                                                     Status of the General Meeting


(1)      The supreme Company body is the General Meeting. It consists of all shareholders present at the General Meeting.


(2)      The General  Meeting is  competent  to decide  about all matters,  which are  entrusted  to its  competence  by the law or the
         Articles of Association.


(3)      The General Meeting decides by means of its resolutions, which are binding for the Company and its bodies.


                                                              Article 13
                                                     Powers of the General Meeting

(1)      It is within the powers of the general meeting to:

         a)     decide to modify the Articles of Association  unless it is a change as a consequence of registered  capital increase by
                the Board of  Directors  pursuant to Section 210 of the  Commercial  Code or a change as a  consequence  of other legal
                facts,

         b)     decide to increase or reduce the registered  capital or to authorize the Board of Directors  pursuant to Section 210 of
                the  Commercial  Code or to set off a receivable  from the company  against a  receivable  relating to the amount of an
                issue price,

         c)     decide to issue bonds,

         d)     elect and recall Board of Directors' members,

         e)     elect and recall  Supervisory  Board's members and other bodies'  members set by the Articles of Association,  with the
                exception of Supervisory Board members elected pursuant to Section 200 of the Commercial Code,

         f)     approve the ordinary or extraordinary  financial  statements and consolidated  financial statements and in cases set by
                law  also  the  interim  financial  statements,  and to  decide  on the  profit  distribution,  covering  the  loss and
                determination of directors fees (emoluments),

         g)     decide on the financial remuneration of Board of Directors' and Supervisory Board's members,

         h)     decide to apply for the listing of the  company's  participating  securities  under  another  Act,  or to revoke  their
                listing,

         i)     decide to wind up the  Company  in  conjunction  with its  liquidation,  to  appoint  and  recall  the  liquidator,  including
                determining  the  amount  of the  liquidator's  remuneration,  approve  the plan for  distribution  of the  liquidation
                remainder,

         j)     decide on Company merger, transfer of business assets to a sole shareholder or on division, and/or a change of legal form,

         k)     decide  whether to conclude a contract if its object is the transfer of an  enterprise  or its part, or lease of an enterprise
                or its part, or whether to conclude such contract with a controlled person,

         l)     approve a controlling  agreement  (Section 190b of the Commercial  Code), the profit transfer  agreement  (Section 190a of the
                Commercial Code) and a silent partnership agreement and their amendments,

         m)     decide on other  matters,  which the  Commercial  Code or the  Articles  of  Associations  entrust  to the  General  Meeting's
                competence.

(2)      The General  Meeting may not reserve the right to decide on a matter  which  neither the law nor the  Articles of  Association
         entrust to its competence.


                                                              Article 14
                                                   Convening of the General Meeting

(1)      The  General  Meeting is held at least once a year,  however no later than on June 30 of the  current  calendar  year,  and is
         called by the Board of Directors, possibly its member under conditions of Section 184(3) of the Commercial Code.

(2)      The Supervisory Board convenes the General Meeting if it is required by Company interests,  and proposes necessary measures at
         the General  Meeting.  Provisions of Section 184 through 190 of the Commercial Code are valid for General Meeting  convocation
         as appropriate.

(3)      If the General Meeting is convened by the Supervisory  Board, the Board of Directors has to cooperate  adequately  (especially
         it is obligated to apply for an abstract from the statutory  registry of uncertificated  (book-entry)  securities - securities
         issuer register).

(4)      The day  specified  for  participation  at General  Meeting is the seventh  calendar day before the day of holding the General
         Meeting  (Article 18  Paragraph  1 of the  Articles of  Association).  The Board of  Directors  is  obligated  to apply for an
         abstract from the statutory  registry of securities  (record from securities issuer register) as valid on the decisive day. In
         case of a substitute  General Meeting,  the Board of Directors shall apply for a new abstract from securities  issuer register
         (Article 19 Paragraph 8 of the Articles of Association).

(5)      The Board of  Directors  is obligated  to publish the  announcement  on holding the General  Meeting at least 30 days prior to
         holding  the  General  Meeting,  namely in one  nation-wide  distributed  daily  newspaper -  Hospoda0ske  noviny.  If, in the
         meantime,  this daily  stops to be  distributed  nation-wide  or stops to be a daily or stops to be  distributed  at all,  the
         announcement on holding the General Meeting shall be published in another  nation-wide  distributed  daily.  Then, the nearest
         General Meeting, shall determine another nation-wide distributed daily for this purpose.

(6)      The announcement on holding the General Meeting contains at least the following data:

         a)       commercial company and  seat of the Company,

         b)       venue, date and hour of the General Meeting,

         c)       whether it is an ordinary, extraordinary or substitute General Meeting that is being convened,

         d)       the agenda of the General Meeting,

         e)       the decisive day for participation in the General Meeting.

(7)      The main data in the financial  statements inter alia specifying the time and place, in which the financial  statements can be
         seen by  Company  shareholders,  is  part of the  announcement  on  holding  the  General  Meeting,  on  which  the  ordinary,
         extraordinary  and  consolidated,  or  interim  financial  statements  shall be  approved.  If the change in the  Articles  of
         Association is on General  Meeting's  agenda,  the announcement on holding the General Meeting must at least  characterize the
         principle of proposed  changes and the proposal of changes in the Articles of  Association  must be open to public  inspection
         on the Company  registered  seat within the period set for convening the General  Meeting.  A shareholder has the right to ask
         for mailing a copy of the proposal of the Articles of Association on own costs and on own account.  The  shareholders  must be
         notified about these rights in the announcement on holding the General Meeting.

(8)      After holding one General Meeting, another General Meeting must not be held earlier than in two business days.

(9)      The venue,  date and time of holding  the General  Meeting  must be  determined  in such a manner as not in any way to prevent
         shareholders attending at the General Meeting.


                                                              Article 15
                               Convocation of an Extraordinary General Meeting in case of the Request of
                                                    Qualified Shareholders Minority

(1)      The shareholder or shareholders of the Company,  whose  registered  capital is higher than CZK  100,000,000,  who have shares,
         whose total value exceeds 3 per cent of the registered  capital,  and further the  shareholder or shareholders of the Company,
         whose  registered  capital is CZK  100,000,000  and lower,  who have shares,  whose total  nominal value exceeds 5 per cent of
         registered  capital,  can ask the Board of Directors to call an extraordinary  General Meeting to discuss the proposed matters
         (Section 181(1) of the Commercial Code).

(2)      The Board of Directors  shall convene an  Extraordinary  General Meeting so that it takes place no later than 40 days from the
         day, when the Board of Directors  received the request for its  convocation.  The deadline  mentioned in Section 184(4) of the
         Commercial  Code and Article 14  Paragraph 5 of the  Articles  of  Association  is being  shortened  to 15 days.  The Board of
         Directors  is not  entitled to change the  proposed  agenda.  The Board of Directors is entitled to amend the agenda only with
         consent of persons,  who requested to convene the  Extraordinary  General Meeting pursuant to Section 181(1) of the Commercial
         Code and paragraph 1 of this Article of the Articles of Association.

(3)      Revocation or change of date of holding of an  extraordinary  General Meeting on a later date,  convened  according to Section
         181, is regulated by Section 184(7) of the Commercial Code and Article 17 Paragraph 2 of the Articles of Association.


                                                              Article 16
                                   Convocation of an Extraordinary General Meeting in a Special Case

The Board of Directors shall convene a General  Meeting,  without undue delay,  when it ascertains that a settlement of a loss shown in
any of the financial  statements from the company's  disposable  funds would still leave an unsettled amount  representing  half of the
registered capital of the company,  or this result may be expected with respect to all circumstances,  or if the board establishes that
the company has become  insolvent,  and propose to the general  meeting that the company be wound up, or another measure to be adopted,
unless a specific legislative regulation provides otherwise.

                                                              Article 17
                                  Revocation of the General Meeting or Change of Date of its Holding

(1)      The General  Meeting can be revoked or the date of its holding can be changed for a later date.  The revocation of the General
         Meeting or the change of the date of its holding have to be  announced  in the way set by law and the Articles of  Association
         concerning  convocation of the General Meeting,  one week prior to the announced date of its holding at the latest,  otherwise
         the Company is obligated to pay to the shareholders who came according to the original  announcement,  the expenses reasonably
         incurred.

(2)      The  extraordinary  General  Meeting  convened  pursuant to Section 181 of the Commercial  Code (Article 15 of the Articles of
         Association)  can be revoked or the date of its  holding can be changed  for a later date only if the  mentioned  shareholders
         ask for it. When a new date of holding the General  Meeting is set, the deadline  pursuant to Section 184(4) of the Commercial
         Code or pursuant to Section 181(2) of the same act must be met.


                                                              Article 18
                                                 Participation in the General Meeting

(1)      Every shareholder who is mentioned in abstract from the statutory registry of uncertificated  (book-entry) securities as valid
         on the decisive day (statement from securities  issuer register)  [Article 5, Article 14 Paragraph 4 and Paragraph 6 letter e)
         of the Articles of Association], has the right to participate at the General Meeting.

(2)      The  shareholder  (an  individual is entitled to participate  at General  Meeting and to perform his rights  personally at the
         General Meeting.  The shareholder  (legal entity) is entitled to participate at the General Meeting and to perform  personally
         its/his rights by means of an authorized member of its/his statutory body.

(3)      When  performing his rights at the General  Meeting the  shareholder is entitled to be represented by an individual or a legal
         entity (proxy).  For this purpose the shareholder  (principal)  shall provide a written power of attorney to the proxy,  which
         has to contain  the scope of  proxy's  authorization,  otherwise  it is void.  The proxy is  obliged  to deliver  the power of
         attorney to the  persons  mentioned  in Article 21  Paragraph 2 of the  Articles of  Association  prior to the record into the
         attendance list. Members of the Company Board of Directors or Supervisory Board can not be a shareholder's proxy.

(4)      The present  shareholders are recorded into the attendance list, which contains Commercial Name or name and registered seat of
         the legal entity or the name and address of the natural person  (individual),  who is the shareholder,  possibly of his proxy,
         and the nominal  value of shares  authorizing  the person for voting,  possibly the data that the share does not authorize for
         voting.  If the  Company  refuses to record a specific  person  into the  attendance  list,  they  mention  that fact into the
         attendance  list  including  the reason of  refusal.  The  Chairman of the General  Meeting and the Minutes  clerk  elected in
         compliance with the Articles of Association confirm the correctness of the attendance list by their signatures.

(5)      When being recorded into the attendance list, the shareholders (shareholders' proxies) prove their identity as follows:

         a)       an individual (a natural  person) with a valid  identity card  containing  his/her  birth  certificate  number,  e.g.
                  identity  card,  passport.  Otherwise the natural person must submit an  authenticated  document on assignment of the
                  birth certificate number, and in case it was not assigned,  an authenticated copy of a document,  from which the date
                  of his/her birth is obvious.  In addition the  shareholder's  proxy shall prove his/her identity with a written power
                  of attorney,

         b)       the authorized  member of legal entity's  statutory body acting on behalf of the legal entity, as the natural person,
                  with a valid  identity  card as the  shareholder  mentioned  under  letter a),  and with a document - original  or an
                  authenticated  copy of the extract from the Commercial  Register or from other official files or from other authentic
                  legal  entity's  existence  documentation,  from which the way of acting on behalf of legal  entity's  statutory body
                  towards  other  parties  follows on behalf of the legal  entity  (or  representing  the legal  entity  towards  other
                  parties),  not older than six months from the day of holding  the  General  Meeting.  In case the  document  does not
                  contain the legal  entity's  identification  number,  it is  necessary to submit an extra  authenticated  copy of the
                  document  concerning  its  assignment.  Shareholder's  proxy  authorized by legal  entity's  statutory  body shall in
                  addition prove his/her identity with a written power of attorney,

         c)       a representative of city, town or village with authenticated  abstract on decision of the council about delegation of
                  the  representative or his/her  substitute to the General Meeting [Section  84(2)(g) of the Act on Cities,  Towns and
                  Villages, No. 128/2000 Coll.] and valid personal identity card,

         d)       the foreign natural person (individual) with a valid passport.  Shareholder's proxy shall prove his/her identity with
                  a valid identity card and a written power of attorney,  and in case the shareholder's address is in a country,  which
                  has no agreement on legal  assistance with the Czech Republic,  the proxy shall submit a power of attorney which will
                  be superlegalized (authenticated by higher authority),

         e)       the proxy of a foreign legal entity with a valid passport,  possibly with an identity card as a shareholder mentioned
                  under  letter  a) if  he/she is a proxy  with the  citizenship  of the  Czech  Republic,  and has a written  power of
                  attorney,  and if the  shareholder's  address is in a country,  which has no agreement on legal  assistance  with the
                  Czech  Republic,  the proxy shall submit a power of attorney which will be  superlegalized  (authenticated  by higher
                  authority).  The documents that shall prove identity of a foreign legal entity,  must be superlegalized,  in case the
                  Czech Republic has no agreement on legal assistance with the country where the shareholder has his/her address.

The documents  under letters a) through e) have to be submitted by the  shareholder  or his proxy prior to the record in the attendance
list, to the persons mentioned in Article 21 Paragraph 2 of the Articles of Association.

(6)      The signature of the represented shareholder (principal) on the written power of attorney must be authenticated. .

(7)      The power of attorney,  originals or the  authenticated  copies of documents  mentioned  under  letters a) through e),  except
         personal identity cards (identity card, (traveler's) passport, etc.), are attached to the attendance list.

(8)      The documents  submitted by a foreign person or the documents and other deeds in foreign  language must be translated into the
         Czech language and provided with the stamp of the translator who is registered in the list of court translators.

(9)      The Board of Directors and  Supervisory  Board members  participate in the General  Meeting.  The notary  participates  in the
         General  Meeting every time when the Commercial  Code sets duty to make a notarial deed.  Other persons can participate in the
         General Meeting or its part only with the approval of the Board of Directors.  However,  the notary and the (above  mentioned)
         other persons taking part in the  proceedings of the General  Meeting  neither vote, nor can require  explanations  concerning
         the Company matters,  which are on General  Meeting's  agenda,  nor submit proposals and  counter-proposals,  nor do they have
         other shareholders rights.  Persons authorized by law with the extent of authorization  mentioned in law can also take part in
         the General Meeting. The General Meeting is not open to public.

 (10)    The  expenses  connected  with  shareholder's  participation  at the General  Meeting are  covered by the  shareholder  unless
         otherwise set by the Commercial Code.


                                                              Article 19
                                     Quorum of the General Meeting and Substitute General Meeting

(1)      The General Meeting  constitutes a quorum if the present  shareholders have shares with nominal value exceeding 40 per cent of
         the Company registered capital.

(2)      If the General  Meeting does not constitute a quorum by two hours from the beginning of starting the General  Meeting,  set in
         the  announcement on holding the General Meeting,  then the member of the Board of Directors,  who was authorized by the Board
         of Directors to chair the General Meeting till the General Meeting  chairman is elected,  shall dissolve the General  Meeting.
         In this case the Board of Directors shall convene a substitute General Meeting.

(3)      The  substitute  General  Meeting is called by the Board of Directors by a new  announcement  in the way  mentioned in Section
         184(4) of the Commercial  Code and Article 14 Paragraph 5 of the Articles of  Association,  with the  specification,  that the
         deadline mentioned is shortened to 15 days.

(4)      The announcement on holding a substitute  General Meeting has to be published no later than 15 days from the day, on which the
         original General Meeting was convened.

(5)      The substitute  General Meeting must be held no later than six weeks from the day, for which the original  General Meeting was
         convened.

(6)      The substitute  General  Meeting must have an unchanged  agenda and  constitutes  quorum with no regard to Paragraph 1 of this
         Article of the Articles of Association.

(7)      The matters  which were not  included  into the  proposed  agenda of the original  General  Meeting,  can be decided only with
         participation and approval of all Company shareholders.

(8)      A new abstract from the statutory registry of securities  (securities issuer register) (Article 14 Paragraph 4 of the Articles
         of Association) is made by the Company for the substitute General Meeting.


                                                              Article 20
                                                    General Meeting Decision Making

(1)      The General  Meeting  decides with majority of votes of present  shareholders  unless the  Commercial  Code  requires  another
         majority.

(2)      The General  Meeting  decides  about the matters  pursuant to Section  187(1)  letter a), b), and c) and about winding up of a
         company with its going into  liquidation and the plan of liquidation  balance  distribution by at least two thirds of votes of
         present  shareholders.  If the General Meeting decides to increase or reduce the registered capital,  approval of at least two
         thirds  of votes of  present  shareholders  for each  type of  shares,  issued by the  Company  or  issued in form of  interim
         certificates, is also required.

(3)      For the  decision  of the  General  Meeting  on the  change of sort or form of shares,  on change of rights  connected  with a
         specific  type of  shares,  on  restriction  of a  registered  share  transferability  and on  cancellation  of  share  public
         transferability is also required the approval of at least three fourths of votes of present shareholders having these shares.

(4)      The  General  Meeting  decides  with at least  three  quarters  of votes of  present  shareholders  about the  elimination  or
         restriction  of the  pre-emptive  right for  obtaining  convertible  bonds  and  priority  bonds,  about  the  elimination  or
         restriction of the pre-emptive  right for  subscription of new shares pursuant to Section 204a of the Commercial  Code, on the
         approval  of the  controlling  agreement  (Section  190b of the  Commercial  Code),  on the  approval  of the profit  transfer
         agreement  (Section 190a of the Commercial  Code), and their changes and on increase of registered  capital with  non-monetary
         contributions.  If the Company issued more types of shares,  the General Meeting decides with at least three quarters of votes
         of present shareholders for each share type.

(5)      A General  Meeting's  resolution on  consolidation  of shares  requires  approval by all  shareholders  whose shares are to be
         consolidated.

(6)      A notarial  deed must be  elaborated  on the  decisions  pursuant to Sections 2 through 5 of this  Article of the  Articles of
         Associations.  The notarial  deed on the decision on the change of the Articles of  Association  must contain also an approved
         text of the change in the Articles of Association.

(7)      The General Meeting votes first about the proposal of the resolution  submitted for its decision by the Board of Directors and
         if the proposal is not approved,  voting of other  shareholders'  counter-proposals  is made in such order, in which they were
         submitted. If some of the proposals are adopted by a necessary majority of votes, there is no voting on other proposals.

(8)      The matters  which were not  included  into the  proposed  General  Meeting  agenda can be decided  only in presence  and with
         approval of all Company shareholders.


                                                              Article 21
                            Organization of the General Meeting, its chairing, Procedural and Voting Order,
                                                    minutes of the General Meeting

(1)      The organization of the General Meeting is secured by the Board of Directors.

(2)      Administration  of the attendance  list,  verification of the right to participate in the General  Meeting  (Article 18 of the
         Articles of Association) and authorization to exercise  shareholders  voting rights is secured by persons  authorized for that
         by the Board of Directors.

(3)      After completing the record of the shareholders into the attendance list these persons shall submit the established  number of
         present  shareholders  and number of their votes to the member of the Board of Directors  who was  authorized  by the Board of
         Directors to chair the General Meeting.

(4)      In case the  General  Meeting is not able to  constitute  a quorum  pursuant  to Article 19  Paragraph  1 of the  Articles  of
         Association, it shall be governed by other provisions of Article 19 of the Articles of Association.

(5)      The General Meeting,  after verifying the quorum,  is opened by the member of the Board of Directors who was authorized by the
         Board of  Directors.  In the  beginning,  he/she shall  introduce  the agenda of the General  Meeting and shall  introduce the
         present members of the Board of Directors and of Supervisory Board to General Meeting participants.

(6)      The  acting/proceedings  and voting of the General  Meeting  shall be governed by  Procedural  and Voting Order of the General
         Meeting,  which shall be approved by the General  Meeting.  The  Procedural  and Voting  Order have to be in  compliance  with
         generally  obligatory legal rules,  especially with the Commercial Code, and with the Articles of Association.  In the matters
         not  regulated  by these  Procedural  and Voting  Order the  General  Meeting is  governed  by the  Articles  of  Association,
         decisions,  principles and  instructions of the General  Meeting and by generally  obligatory  legal rules,  especially by the
         Commercial  Code. If some provision of the Procedural and Voting Order is in contradiction  with these  standards,  decisions,
         principles and instructions, these standards, decisions, principles and instructions apply.

(7)      The General Meeting elects its Chairman, Minutes Clerk, two Minutes Verifiers and Scrutineers (General Meeting bodies).

(8)      Until the election of the Scrutineers, the votes are counted by the persons authorized by the Board of Directors.

(9)      Only individuals present at General Meeting, who agree with this candidature, can be nominated to General Meeting bodies.

(10)     Until the chairman of General Meeting and other bodies are elected,  the General Meeting is chaired by the member of the Board
         of Directors who was authorized by the Board of Directors.

(11)     The General  Meeting is chaired by the  chairman of the General  Meeting  according  to General  Meeting  agenda  published in
         compliance  with Article 14 Paragraphs 5 and 6 Letter d) of the Articles of  Association.  Provision of Article 20 Paragraph 8
         of the Articles of Association is unaffected by that.

(12)     Minutes of the General Meeting shall be kept.

(13)     Motions and  statements,  submitted at the General Meeting for  discussion,  are attached to the Minutes,  plus the Attendance
         List of the General Meeting.

(14)     The Board of  Directors  ensures  the  preparation  of the  Minutes of the  General  Meeting no later than in 30 days from its
         termination.  The Minutes are signed by the Minutes Clerk and the Chairman of the General  Meeting and two elected  persons to
         verify the minutes (verifiers).

(15)     The duty to make a notarial deed in cases set by the  Commercial  Code shall not be affected by the provisions of this Article
         on the Minutes of the General Meeting.

(16)     The Minutes on the General  Meeting and notarial  deeds must not be discarded  and must be filed for the whole time of Company
         existence.


                                                               Division II

                                                          BOARD OF DIRECTORS


                                                              Article 22
                                                   Status of the Board of Directors


(1)      The Board of Directors is the statutory body of the Company, which manages the Company's activity and acts in its name.

(2)      The Board of Directors has 8 members.

(3)      The members thereof are elected and recalled by the General Meeting.

(4)      The term of office of  individual  members of the Board of Directors  shall last five years.  The term of office starts on the
         day of electing the Board members by the General Meeting. Any Board member can be reelected.

(5)      The Board of  Directors  whose  number of  members  elected by the  General  Meeting  was not lower than one half can  appoint
         substitute  members until the next General Meeting.  A Board of Directors  member can resign from his office.  He is, however,
         obliged  to give  notice of this to the  Board of  Directors.  His  tenure  shall  end on the day when the Board of  Directors
         discusses,  or should have  discussed,  his  resignation.  The Board of Directors is obliged to discuss the resignation at its
         next meeting after it has been informed of the  resignation.  If a Board of Directors  member that resigns gives notice of his
         resignation during a meeting of the Board of Directors,  his tenure shall end after two months of such notice,  unless,  based
         on his requirement, the Board of Directors agrees upon a different term of his tenure's termination.

(6)      The Board of Directors' members shall elect its Chairman and two Deputy Chairmen out of its members.

(7)      The membership in the Board of Directors is unsubstitutable. Mutual substitution is inadmissible.


                                                              Article 23
                                                    Acting on behalf of the Company
                                         and acting for the Board of Directors by its Members

The Board of Directors  acts on behalf of the Company.  Either the Chairman  separately,  or jointly any Deputy  Chairman and one Board
member,  or  separately  a Board  member  within the scope of written  authorization  delegated by the Board may act in the name of the
company  towards other parties.  The Board members who as foreign  individuals do not have a permit for residence in the Czech Republic
are not entitled to act in the name of the company towards other parties.



                                                              Article 24
                                    Signing on behalf of the Company by the Statutory Body Members

(1)      Signing on behalf of the Company is carried out in such a way that the Board  Chairman  separately or any Deputy  Chairman and
         a Board member  jointly or one member  separately  authorized  in writing by the Board of Directors  append their  signatures,
         mentioning their function in the Board of Directors to the Company's printed, imprinted or written Company's commercial name.

(2)      Specimen  signatures of all Board members who are entitled to act in the name of the company  towards other parties,  in which
         the signatures are authenticated,  are filed in the Company;  the Company also enters them in the registry of documents of the
         Registration Court when entering changes in the Commercial Register.



                                                              Article 25
                                                  Board of Directors' Range of Powers

(1)      The Board of  Directors  decides  on all  matters  relating  to the  Company,  provided  they have not been  entrusted  by the
         Commercial Code or the Articles of Association to the powers of the General Meeting or the Supervisory Board.

(2)      The Board of Directors in particular:

         a)       insures business, as well as proper accounting management of the Company,

         b)       convenes the General Meetings,  substitute  General Meetings as well as extraordinary  General Meetings,  and secures for this
                  purpose abstracts from the statutory registry of uncertificated  (book-entry)  securities as of the decisive day (the
                  Securities Issuers Registry),

         c)       submits to the General  Meeting for approval  and decision on proposals  that are to be approved and decided on by the General
                  Meeting, in particular:

                  -    proposals  for changes to the Articles of  Association,  unless it concerns a change  caused by an increase in the  registered
                       capital by the Board of Directors pursuant to Section 210 of the Commercial Code,

                  -    ordinary,  extraordinary  and consolidated,  and/or interim  financial  statements and proposals for distribution of profit or
                       covering a loss and the determination of director's fees (emoluments),

                  -    proposal for financial remuneration of members of the Board of Directors and the Supervisory Board,

                  -    proposals for the election and recall of members of the Board of Directors and the  Supervisory  Board,  except for members of
                       the Supervisory Board elected pursuant to Section 200 of the Commercial Code,

                  -    proposals for changes to the registered capital and for an issue of priority and convertible bonds,

                  -    proposals for changes to the form, type and kind of shares,

         d)       submission  of an annual  Report on  Company  Business  Activity  and the Status of its Assets to the  general  meeting  which
                  approves the Annual Financial Statements for the preceding accounting period,

         e)       decides  on an  increase  in the  registered  capital  pursuant  to  Article  6,  Paragraphs  6 through 8 of the  Articles  of
                  Association, being authorized by the General Meeting,

         f)       elects and recalls the Chairman and Deputy Chairmen of the Board of Directors out of the Board members,

         g)       appoints and recalls the Managing  Director of the Company and (top)  management (key personnel) in accordance with Section 27
                  of the Labor Code, and concludes agreements on conditions of the performance of the office of the Managing Director,

         h)       to secure the possible  contractual  performance  of the office of Company  Managing  Director,  chooses a natural person - an
                  entrepreneur  with a corresponding  trade license and concludes the contract on the terms of performing the office of
                  Company Managing Director

         i)       selects an auditor,

         j)       files petitions for excerpts from the statutory securities registry (excerpt from the Securities Issuer Register),

         k)       without undue delay,  ensures the  elaboration of the unabridged  wording of the Articles of  Association,  if a change in the
                  Articles of  Association  occurs based on any legal fact,  after any of the Board of Directors'  members learns about
                  such a change,

         l)       ensures the  fulfillment of reporting,  information  and other similar duties of the Company in accordance  with general legal
                  regulations.

(3)      The Board of Directors carries out the General Meeting's resolutions and decisions.

(4)      The Board of Directors passes provisions concerning a protection of the Company's trade secrets.

(5)      The Board of Directors is governed by the principles and  instructions  adopted by the General  Meeting,  provided they are in
         accordance with statutory  provisions and these Articles of Association.  Their  infringement  has no influence on the effects
         of actions by members of the Board of Directors with regard to third  parties.  Unless  otherwise set by the Commercial  Code,
         nobody is authorized to give orders to the Board of Directors concerning the Company business management.

(6)      The Board of Directors submits to the Supervisory Board in particular:

         a)       Ordinary,  Extraordinary and Consolidated Financial Statements,  and/or the Interim Financial Statements and the proposals for
                  the distribution of profit or settlement of loss and the setting of director's fees, for review,

         b)       Report on Company Business Activity and the Status of its Assets, for delivery of an opinion,


(7)      The Board of Directors  decides on the use of money from the Reserve  Fund  pursuant to Article 37 Paragraph 7 of the Articles
         of Association.


                                                              Article 26
                                                  Convening of the Board of Directors

(1)      The Board of Directors meets according to need.

(2)      The meetings of the Board of Directors are called by its Chairman,  if being  absent,  the Board  meetings are convened by any
         of the Deputy Chairmen or another authorized Board member.

(3)      At its  discretion,  the Board of Directors may also invite members of other  Company's  bodies,  employees,  shareholders  or
         other persons.


                                                              Article 27
                                                  Board of Directors' Decision Taking

(1)      The Board of Directors has a quorum when an absolute majority of its members is present.

(2)      Each member of the Board of Directors has one vote on voting at Board meetings.

(3)      Absolute  majority  of votes of all Board of  Directors'  members  is  required  to pass a  resolution  concerning  any matter
         discussed at the meeting of the Board of Directors. If the votes are equal, the Chairman's vote decides.

(4)      On  election  and  recall of the Board  Chairman  or the Deputy  Chairmen  and on  deciding  on  appointing  and recall of the
         Company's Managing Director, if he is simultaneously a member of the Board of Directors, the person concerned shall not vote.


                                                              Article 28
                                        Board of Directors' Decision Taking out of the Meeting

(1)      In case of an  emergency,  the  voting in  writing  or by means of  communication  technology  out of the  Board's  meeting is
         possible,  if agreed by all Board members.  The voting persons are considered  present.  To adopt the decision of the Board of
         Directors, it is necessary that absolute majority of all present members of the Board of Directors vote for the decision.

(2)      The decision adopted in this way must be incorporated in the minutes of the next Board of Directors' meeting.


                                                              Article 29
                                    Bonuses and Director's fees of the Board of Directors' Members

(1)      The level of bonuses and director's fees of the Board of Directors'  members shall be decided by the General Meeting  [Article
         13 Letter g) of the Articles of Association].

(2)      A profit  share of the Board  members  (director's  fees) may be set forth by the  General  Meeting on the basis of the profit
         approved to be distributed [Article 13 Letter f) of the Articles of Association].

(3)      The Board of Directors decides on the distribution of bonuses and director's fees to its members.



                                                              Division III

                                                           SUPERVISORY BOARD


                                                              Article 30
                                                    Status of the Supervisory Board

(1)      The Supervisory Board is the supervising authority of the Company.

(2)      A member  of the  Supervisory  Board  may not  also be a  member  of the  Board  of  Directors,  an agent by proxy or a person
         authorized according to the record in the Commercial Register to act on behalf of the Company.

(3)      The Supervisory Board has 6 members.

(4)      Two-thirds of the specified  number of members of the Supervisory  Board shall be elected and recalled by the General Meeting,
         and one third by the Company's employees.

(5)      Members of the Supervisory  Board are elected for a period of five years;  their term of office may not,  however,  end before
         new  members  have been  elected.  The term of office of the  members  of the  Supervisory  Board  starts on the date when the
         members are elected by the General Meeting or employees. Members of the Supervisory Board may be re-elected.

(6)      The  Supervisory  Board,  whose  number of members  elected by the  General  Meeting is not lower than one half,  can  appoint
         substitute  members till the next General  Meeting.  A Supervisory  Board member can resign from his office.  He is,  however,
         obliged  to give  notice  of this to the  Supervisory  Board.  His  tenure  shall  end on the day when the  Supervisory  Board
         discusses, or should have discussed, his resignation.  The Supervisory Board is obliged to discuss the resignation at its next
         meeting  after it has been  informed of the  resignation.  If a  Supervisory  Board  member that  resigns  gives notice of his
         resignation during a meeting of the Supervisory Board, his tenure shall end after two months of such notice,  unless, based on
         his requirement, the Supervisory Board agrees upon a different term of his tenure's termination.


(7)      The Supervisory Board shall elect its Chairman and Deputy Chairman out of its members.

(8)      The membership in the Supervisory Board is unsubstitutable. Mutual substitution is not admissible.



                                                              Article 31
                                                    Powers of the Supervisory Board

(1)      The  Supervisory  Board  oversees the exercise of the powers of the Board of Directors  and the carrying out of the  Company's
         business activities.  For this purpose, the Board of Directors provides the Supervisory Board with required  information.  The
         Supervisory Board is not entitled to assign its powers to other Company's bodies or employees.

(2)      In particular, the Supervisory Board

         a)     reviews the  ordinary,  extraordinary  and  consolidated,  and/or  interim  financial  statements  and proposal for the
                distribution of profit or settlement of loss, and submits its opinion to the General Meeting,

         b)     expresses its opinion on the Board of Directors' Report on Company Business Activity and the Status of its Assets,

         c)     reviews observance of the Articles of Association,  decisions, resolutions,  principles and instructions of the General
                Meeting and generally binding legal regulations, in particular the Commercial Code,

         d)     convenes a General Meeting where this is required in the interests of the Company,  and proposes the required  measures at the
                General Meeting thereby convened,

         e)     elects the Chairman and Deputy Chairman of the Supervisory Board   among the members of the Supervisory Board.

(3)      Members of the Supervisory Board are entitled to examine all documents and records relating to the Company's  activities,  and
         examine  whether  accounting  statements  are properly  kept in accordance  with the facts and whether the Company's  business
         activities are conducted in accordance with legal  regulations,  these Articles of Association and instructions of the General
         Meeting.

(4)      The  Supervisory  Board shall  appoint one of its members to  represent  the Company in  proceedings  before  courts and other
         authorities against a member of the Board of Directors.

(5)      The Supervisory  Board is governed by principles and  instructions  approved by the General Meeting  provided they comply with
         legal  regulations  and these Articles of  Association.  Their  violation does not have an impact on effect of negotiations of
         the members of the Supervisory Board towards third parties.



                                                              Article 32
                                             Convening of the Supervisory Board's Meetings

(1)      The Supervisory Board meets according to need.

(2)      The meetings of the  Supervisory  Board are called by its Chairman,  if being absent,  the Board  meetings are convened by the
         Deputy Chairman or another authorized Board member.

(3)      At its discretion,  the Supervisory Board may also invite members of other Company's bodies, employees,  shareholders or other
         persons.


                                                              Article 33
                                                  Supervisory Board's Decision Taking

(1)      The Supervisory Board has a quorum when an absolute majority of its members is present.

(2)      Each member of the Supervisory Board has one vote on voting at Board meetings.

(3)      Absolute majority of votes of all members of the Supervisory  Board is required to pass a resolution.  If the votes are equal,
         the  Chairman's  vote  decides.  The opinions of the minority of members are also  included in the minutes,  provided  they so
         request and always a different opinion of Supervisory Board's members elected by employees is recorded.

(4)      On election and recall of the Board Chairman or Deputy Chairman these persons shall not vote.


                                                              Article 34
                                        Supervisory Board's Decision Taking out of the Meeting

(1)      In necessary cases that can not be put off, the voting in writing or by means of  communication  technology out of the Board's
         meeting is possible,  if agreed by all Board members.  The voting persons are considered present. To adopt the decision of the
         Supervisory Board, it is necessary that absolute majority of Supervisory Board's members votes for the decision.

(2)      Such an adopted decision must be incorporated in the minutes of the next Supervisory Board meeting.


                                                              Article 35
                                    Bonuses and Director's fees of the Supervisory Board's Members

(1)      The level of bonuses and director's fees of the Supervisory  Board's members shall be decided by the General Meeting  [Article
         13 Letter g) of the Articles of Association].

(2)      A profit share of the  Supervisory  Board members  (director's  fees) may be set forth by the General  Meeting on the basis of
         the profit approved to be distributed [Article 13 Letter f) of the Articles of Association].

(3)      The Board of Directors decides on the distribution of bonuses and director's fees for its members.



                                                              CHAPTER SIX

                                                            COMPANY ECONOMY


                                                              Article 36
                                      Profit Distribution and Settlement of a Loss of the Company

(1)      The  General  Meeting  decides  on the  distribution  of the  Company's  profit  on the  basis of a  proposal  by the Board of
         Directors, following a review of such proposal by the Supervisory Board.

(2)      Following  tax  liabilities  fulfillment  pursuant to  statutory  provisions,  after the  allocation  to the reserve fund and,
         possibly,  to other funds,  as the case may be, and after  distribution  for other purposes  approved by the General  Meeting,
         profit achieved by the Company in the accounting period is distributed,  on the basis of a decision by the General Meeting, on
         the payment of dividends to individual  shareholders  and, in accordance  with provisions of Article 29 para. 2 and Article 35
         para 2 of the Articles of  Association on the payment of director's  fees for members of the Company's  Board of Directors and
         Supervisory  Board.  This does not  exclude  the  possibility  of the  General  Meeting's  deciding  that a part of profit not
         specially committed is used to increase the Company's registered capital, or that a part of profit is not distributed.

(3)      The proposal for the profit distribution or settlement of loss is governed by Section 178(6) of the Commercial Code.

(4)      Possible losses arisen in the Company's economy shall be compensated in particular from the Company's Reserve Fund.

(5)      The Company is not entitled to distribute profit among shareholders in cases listed in Section 178(2) of the Commercial Code.


                                                              Article 37
                                                             Reserve Fund

(1)      The  Company  shall  create a reserve  fund in the  period  and amount  determined  by the  Articles  of  Association  and the
         Commercial Code.

(2)      On the Company's  formation,  the Founder made an investment  contribution to the Company's  Reserve Fund in the amount of CZK
         95,619,000  (in words: ninety-five million six hundred nineteen thousand Czechoslovak Crowns).

(3)      When increasing the registered  capital,  the Ordinary  General Meeting held on October 15, 1992, set the level of the Reserve
         Fund to 10 per cent of the total  registered  capital  modified by its  increase,  i.e. to the amount of CZK  100,631,000  (in
         words: one hundred million six hundred thirty-one thousand Czechoslovak Crowns).

(4)      The Company shall create the Reserve Fund from a net profit shown in the Ordinary  Financial  Statements for the year in which
         it first makes a net profit.  It shall  transfer to such fund at least 20 per cent of the net profit,  but no more than 10 per
         cent of the amount of its  Registered  Capital.  This fund shall be  augmented  annually by no less than 5 per cent of the net
         profit,  until the amount of 20 per cent of the  Registered  Capital is reached.  This shall not apply if the Reserve  Fund is
         created from amounts paid in excess of the issue price of shares.

(5)      The Reserve Fund created in this manner may only be used by the Company to settle a loss.

(6)      A proportionate  part of the Company's net profit ("a profit share") may only be determined after appropriate  financial means
         have been allocated to top up the Reserve Fund in accordance with the Commercial Code and these Articles of Association.

(7)      Unless the Articles of Association or the Commercial  Code provide  otherwise,  it is the Board of Directors that shall decide
         on use of the Reserve Fund (Article 25 paragraph 7 of these Articles of  Association).  Each use of the Reserve Fund has to be
         announced to the Supervisory Board and is subject to an additional approval of the General Meeting.



                                                              Article 38
                                                              Social Fund

(1)      The Company creates a Social Fund.

(2)      The amount of allocation  into the Social Fund shall be approved by the General  Meeting on the basis of a motion by the Board
         of Directors.

(3)      The rules of utilization of the Social Fund shall be determined by the Board of Directors.



                                                              Article 39
                                                              Other Funds

Apart from the Reserve and Social Funds,  the Company may create,  in compliance  with the generally  binding legal  regulations,  also
other funds pursuant to the Generally Meeting's  decision.  In such a case, the Generally Meeting's decision shall include their kinds,
amount,  the manner and conditions of their topping up. The rules of their  utilization  shall be determined by the Board of Directors,
unless the statutory provisions of another Act stipulate otherwise.


                                                           CHAPTER S E V E N

                                                         CONCLUDING PROVISIONS


                                                              Article 40
                                               Publishing, Announcements and Information

(1)      The duty to publish data  stipulated by the Commercial  Code shall be considered as performed upon  publishing the data in the
         Commercial Bulletin.

(2)      Documents addressed to the members of the Company's bodies are delivered to the addresses notified by them to the Company.

(3)      The  Company  shall  send  documents  intended  for  shareholders  to  their  addresses  recorded  in  statutory  registry  of
         uncertificated  (book-entry)  securities kept in conformity with another Act by the Securities  Center (the Securities  Issuer
         Register).

(4)      Documents  addressed to the other persons or state  agencies and other bodies shall be delivered to their  addresses  notified
         or well-known to the Company.


                                                              Article 41
                                    Procedure for Amending and Changing the Articles of Association

(1)      Proposals for an amendment or another change of the Articles of  Association  ("changes to the Articles of  Association")  may
         be made by the Board of Directors,  the  Supervisory  Board and a shareholder  provided that the agenda of the General Meeting
         contains changes to the Articles of Association.

(2)      Proposals for changes to the Articles of Association are usually processed by the Board of Directors.

(3)      The General Meeting decides on modification  to the Articles of  Association,  except when such  modification  (change) is the
         result of an increase in the Registered  Capital by the Board of Directors  under Section 210 of the  Commercial  Code or when
         such modification is made on the basis of other legal facts.

(4)      At least  two-third  majority  of votes of the  shareholders  present is needed to pass a decision  concerning  changes to the
         Articles  of  Association.  A  notarial  deed  must be  drawn up on the  resolution  concerning  changes  to the  Articles  of
         Association.

(5)      If the General  Meeting  decides about a change to the Articles of Association,  the Board of Directors  shall,  without undue
         delay,  ensure the compilation of the unabridged wording of the Company's  Articles of Association.  The unabridged wording of
         the Company's  Articles of Association  shall become a part of the registry of documents kept by the  registration  court. The
         Articles of Association contents must be a part of the unabridged wording of the Articles of Association.


                                                              Article 42
                                         Effect of the Changes of the Articles of Association

(1)      Should  the  General  Meeting  decide  on an  increase  or  reduction  of the  registered  capital,  splitting  of  shares  or
         consolidation of shares into one share,  change of share form or kind, or limitation of  transferability  of registered shares
         or a change thereof,  the changes to the Articles of Association  come into force on the day of their record in the Commercial
         Register.

(2)      Other  changes  into the  Articles  of  Association  decided by the  General  Meeting  come into effect at the moment when the
         General  Meeting  made a decision  about them,  provided  that  neither a decision  by the General  Meeting on a change to the
         Articles of Association nor the law requires that they come into effect at a later time.

(3)      If the change in the Articles of  Association  happens based on any legal fact,  the provision of Article 25 para. 2 letter k)
         of the Articles of Association shall apply. The change in the Articles of Association is effective by this other legal fact.

                                                                 * * *



                                                      The Articles of Association
                                                        of United Energy, a.s.,
                                  with its seat in Most - Komorany, Teplarenska 2, postal code 434 03,
                                                         as of April 28, 1992,
                                                       were changed and amended
  by decisions of the General Meeting and the Board of Directors based on other legal facts (Section 173(4) of the Commercial Code),
                                   by the execution of the valid unabridged Articles of Association,
                                                              as follows:


1.       The  Ordinary  General  Meeting  held on October 15,  1992  reached a decision on changes to the  Articles of  Association  in
         Articles 4, 5, 6, 14 and 36.
         (Notarial deed NZ 581/92, N 626/92 as of October 15, 1992, Attestation of the General Meeting deliberations),

2.       The Ordinary  General  Meeting,  held on January 21,  1993,  reached a decision on changes and  amendments  to the Articles of
         Association in Articles 9, 10, 11, 13, 14, 15, 16, 18, 20, 21, 22, 23, 24, 26, 28, 29, 30, 33, 34, 37, 45, 47 and 49.
         (Notarial deed NZ 11/93, N 11/93 as of January 21, 1993, Attestation of the General Meeting deliberations),

3.       The  Ordinary  General  Meeting,  held on July 28,  1993,  reached a decision on changes  and  amendments  to the  Articles of
         Association in Articles 5, 6, 7, 9, 10, 11, 13, 14, 15, 16, 20, 21, 23, 27, 28, 33, 36, 37, 44 and 45.
         (Notarial deed NZ 138/93, N 140/93 as of July 28, 1993, Attestation of the General Meeting deliberations),

4.       The  Ordinary  General  Meeting  held on May 27,  1994,  reached a decision  on changes  and  amendments  to the  Articles  of
         Association in Articles 4, 13, 14, 36 and 39.
         (Notarial deed NZ 109/94, N 109/94 as of May 27, 1994, Attestation of the General Meeting deliberations),

5.       The Extraordinary  General Meeting held on December 20, 1995,  reached a decision on changes and amendments to the Articles of
         Association in Articles 15 and 23.
         (Notarial deed NZ 10/96, N 10/96 as of January 15, 1996, Attestation of the General Meeting deliberations),

6.       The  Ordinary  General  Meeting  held on May 31,  1996,  reached a decision  on changes  and  amendments  to the  Articles  of
         Association in Articles 4, 9, 10, 13, 15, 18, 24 and 26.
         (Notarial deed NZ 183/96, N 184/96 as of June 11, 1996, Attestation of the General Meeting deliberations),

7.       The  Ordinary  General  Meeting  held on May 28,  1997,  reached a decision  on changes  and  amendments  to the  Articles  of
         Association in Articles 1 through 4, Articles 5 through 47 are substituted by Articles 5 through 64.
         (Notarial deed NZ 201/97, N 201/97 as of May 28, 1997, Attestation of the General Meeting deliberations).

8.       The Extraordinary  General Meeting held on February 20, 1998,  reached a decision on changes and amendments to the Articles of
         Association in Article 37 paragraphs 1 and 3 letter d) and in Article 46 paragraphs 1 and 3 letter d).
         (Notarial deed NZ 49/98, N 51/98 as of February 20, 1998, Attestation of the General Meeting deliberations).

9.       The Ordinary  General  Meeting held on June 24, 1998,  reached a decision on changes to the Articles of Association in Article
         28 para. 3.
         (Notarial deed NZ 254/98, N 259/98 as of June 24, 1998, Attestation of the General Meeting deliberations).

10.      The  Extraordinary  General Meeting held on September 28, 1998 reached a decision on changes and amendments of the Articles of
         Association in Articles 1, 2, 4, 5, 6, 13, 16, 20, 28 through 35, 39, 44, 58 and 59.
         (Notarial deed NZ 357/98, N 361/98 as of September 28, 1998, Attestation of the General Meeting deliberations).

11.      The  Ordinary  General  Meeting,  held on June 29,  2000,  reached a decision on changes  and  amendments  of the  Articles of
         Association  in Article 2 para 1 and 3,  Article 4 para 1 and 2 letter b),  Article 6 para 9, Article 26 para 3 and 4, Article
         28 para 3, Article 31 para 2 letter l), Article 35 para 4 and in Article 39 para 4.     (The  notarial  deed  N  72/2000,   NZ
         68/2000 dated June 29, 2000, Attestation of the Ordinary General Meeting deliberations).

12.      Change of the Articles of Association  based on other legal facts (Section 173(4) of the Commercial  Code) - changes  executed
         in all  Articles of  Association  except for Articles 1, 3, 7, 12, 15, 18, 23, 29, 32, 33, 35, 36, 38, 41, 43, 44, 45, 47, 48,
         49, 51, 52, 54, 55, 58, 59, 60, 63 and 64,
         with the elaboration of a valid unabridged wording of the Articles of Association by the Board of Directors on April 26, 2001,

13.      The Ordinary General Meeting held June 28, 2001 decided about the change to the Articles of Association as follows: Article
         1 is repealed, the existing Article 2 is denoted as Article 1 and existing Articles 3 through 64 are replaced by Articles 2
         through 40.
         (Notarial Deed on decision of the General Meeting NZ 222/2001, N 238/2001 of June 28, 2001),

14.      The Ordinary General Meeting held June 27, 2002 decided about change or amendment to the Articles of Association in Articles
         2, 9 paragraph 1 letter b), 13 paragraph 1 letter c), 18 paragraph 7, 22 paragraph 2 and 5, 30 paragraph 6, 37 paragraph 6,
         Articles 38 and 39 are added and the existing Articles 38, 39 and 40 are denoted as Articles 40, 41 and 42.
         (Notarial Deed on decision of the General Meeting NZ 179/2002, N 184/2002 of June 27, 2002)

15.      The Ordinary General Meeting held June 26, 2003 decided about change or amendment to the Articles of Association in Article 2
         paragraph 1 item 17. and 32., in Article 2 paragraph 2 letter b), in Article 22 paragraph 4  first sentence, and in Article
         25 paragraph 2  letter d).
         (Notarial Deed on decision of the General Meeting N 135/2003,  NZ 124/2003, dated July 7, 2003)

16.      The Ordinary General Meeting held June 24, 2004 decided about change or amendment to the Articles of Association in Article
         22(2) (Notarial Deed on decision of the General Meeting N 120/2004, NZ 107/2004, dated June 24, 2004)


                                                    Most - Komorany, June 24, 2004


                                                  On behalf of the Board of Directors


                                                               Zapletal
                                                          Ing. Libor Zapletal
                                                  Chairman of the Board of Directors
                                                          United Energy, a.s.
                                  with its seat at Most - Komorany, Teplarenska 2, postal code 434 03



                                                        ARTICLES OF ASSOCIATION

                                                                  of
                                                          United Energy, a.s.
                           with its registered office in Most - Komorany, Teplarenska 2, postal code 434 03

                                                         as of April 28, 1992

                                    (the full wording as follows from later changes and amendments,
                                                         as of June 24, 2004)

- ---------------------------------------------------------------------------------------------------------------------------------------
                                                OVERVIEW OF THE Articles of Association

                                                              (CONTENTS)



CHAPTER  O N E.......................................................................................2
   GENERAL PROVISIONS................................................................................2
      Article 1......................................................................................2
Commercial Name and the seat of the Company..........................................................2
      Article 2......................................................................................2
Company Scope of Business Activity...................................................................2
CHAPTER  T W O.......................................................................................4
   THE COMPANY REGISTERED CAPITAL AND SHARES.........................................................4
      Article 3......................................................................................4
The Company registered capital and the extent to which it has been paid up and
the method of paying up the issue price of shares including the consequences of
breaching the duty to pay up the subscribed shares on time...........................................4
      Article 4......................................................................................4
Shares...............................................................................................4
      Article 5......................................................................................5
List of Company shareholders.........................................................................5
CHAPTER  T H R E E...................................................................................5
   INCREASE AND REDUCTION OF THE COMPANY REGISTERED CAPITAL..........................................5
   (CHANGES IN THE COMPANY REGISTERED CAPITAL).......................................................5
      Article 6......................................................................................5
Increasing the Company Registered Capital............................................................5
      Article 7......................................................................................7
Rules of the Procedure of the Company Registered Capital Increase....................................7
      Article 8......................................................................................7
Reduction of the Company Registered Capital..........................................................7
      Article 9......................................................................................8
Rules of the Procedure of the Company Registered Capital Reducing....................................8
CHAPTER  F O U R....................................................................................10
   SHAREHOLDERS' RIGHTS.............................................................................10
      Article 10....................................................................................10
The right to participate in the General Meeting and to vote at it, the method of  voting............10
CHAPTER  F I V E....................................................................................11
   COMPANY BODIES...................................................................................11
      Article 11....................................................................................11
Company Bodies......................................................................................11
   Division  I......................................................................................11
   GENERAL MEETING..................................................................................11
      Article 12....................................................................................11
Status of the General Meeting.......................................................................11
      Article 13....................................................................................11
Powers of the General Meeting.......................................................................11
      Article 14....................................................................................13
Convening of the General Meeting....................................................................13
      Article 15....................................................................................14
Convocation of an Extraordinary General Meeting in case of the Request of
Qualified Shareholders Minority.....................................................................14
      Article 16....................................................................................15
Convocation of an Extraordinary General Meeting in a Special Case...................................15
      Article 17....................................................................................15
Revocation of the General Meeting or Change of Date of its Holding..................................15
      Article 18....................................................................................15
Participation in the General Meeting................................................................15
      Article 19....................................................................................18
Quorum of the General Meeting and Substitute General Meeting........................................18
      Article 20....................................................................................18
General Meeting Decision Making.....................................................................18
      Article 21....................................................................................19
Organization of the General Meeting, its chairing, Procedural
and Voting Order,  minutes of the General Meeting...................................................19
   Division II......................................................................................21
   BOARD OF DIRECTORS...............................................................................21
      Article 22....................................................................................21
Status of the Board of Directors....................................................................21
      Article 23....................................................................................22
Acting on behalf of the Company.....................................................................22
      Article 24....................................................................................22
Signing on behalf of the Company by the Statutory Body Members......................................22
      Article 25....................................................................................22
Board of Directors' Range of Powers.................................................................22
      Article 26....................................................................................24
Convening of the Board of Directors.................................................................24
      Article 27....................................................................................25
Board of Directors' Decision Taking.................................................................25
      Article 28....................................................................................25
Board of Directors' Decision Taking out of the Meeting..............................................25
      Article 29....................................................................................25
Bonuses and Director's fees of the Board of Directors' Members......................................25
   Division III.....................................................................................26
   SUPERVISORY BOARD................................................................................26
      Article 30....................................................................................26
Status of the Supervisory Board.....................................................................26
      Article 31....................................................................................27
Powers of the Supervisory Board.....................................................................27
      Article 32....................................................................................28
Convening of the Supervisory Board's Meetings.......................................................28
      Article 33....................................................................................28
Supervisory Board's Decision Taking.................................................................28
      Article 34....................................................................................28
Supervisory Board's Decision Taking out of the Meeting..............................................28
      Article 35....................................................................................28
Bonuses and Director's fees of the Supervisory Board's Members......................................28
CHAPTER S I X.......................................................................................29
   COMPANY ECONOMY..................................................................................29
      Article 36....................................................................................29
Profit Distribution and Settlement of a Loss of the Company.........................................29
      Article 37....................................................................................30
Reserve Fund........................................................................................30
      Article 38....................................................................................30
Social Fund.........................................................................................30
      Article 39....................................................................................31
Other Funds.........................................................................................31
CHAPTER S E V E N...................................................................................31
   CONCLUDING PROVISIONS............................................................................31
      Article 40....................................................................................31
Publishing, Announcements and Information...........................................................31
      Article 41....................................................................................31
Procedure for Amending and Changing the Articles of Association.....................................31
      Article 42....................................................................................32
Effect of the Changes of the Articles of Association................................................32

EX-99 7 ex99-6.htm CERTIFICATE OF INCORPORATION OF UNITED ENERGY Horizon LFG, Cert of Amend of Cert of Inc.

ex99-6

CERTIFICATE OF AMENDMENT
OF
THE CERTIFICATE OF INCORPORATION
OF
UPSTATE ENERGY INC.,

UNDER SECTION 805 OF THE BUSINESS CORPORATION LAW

(1)  

The current name of the corporation is Upstate Energy Inc. The name under which it was originally formed was Niagara Energy Trading Inc.


(2)  

The certificate of incorporation of Niagara Energy Trading Inc. was filed by the Department of State on July 16, 1997.


(3)  

This certificate of amendment amends Article FIRST of the Restated Certificate of Incorporation of Niagara Trading Inc., filed May 21, 1998, which reads, “The name of this corporation is Upstate Energy Inc.” Article FIRST is amended to read “The name of this corporation is Horizon LFG, Inc.”


(4)  

This amendment was authorized by unanimous written consent of the board of directors of Upstate Energy Trading Inc., followed by written consent of the sole shareholder of Upstate Energy Trading Inc., both dated March 11, 2004


  I have signed this certificate of amendment on March 15, 2004, and affirm that the statements in it are true under penalties of perjury.


/s/ John Solomon
John Solomon
Attorney-in-Fact
6363 Main Street
Williamsville, NY 14221

EX-99.B 8 ex99-7.htm BYLAWS OF HORIZON LFG, INC. Horizon LFG, Inc. (f/k/a Upstate Energy, Inc.) By-Laws

ex99-7

Amended 10/8/97
Amended 3/13/98
Amended 5/19/98
Amended 6/19/98
Amended 8/24/99
Amended 3/28/03
Amended 3/11/04
Amended 4/1/2004

BY-LAWS
OF
HORIZON LFG, INC.

(f/k/a UPSTATE ENERGY INC.)

ARTICLE I
OFFICES

        Section 1.   Principal Office.    The principal office of this corporation shall be in the County of Erie, State of New York.

        Section 2.    Other Offices.    The corporation may have such other offices and places of business, within or without the State of New York, as may be determined by the Directors.

ARTICLE II
SHAREHOLDERS

        Section 1.   Place of Meetings.    Meetings of the shareholders may be held at such place or places, within or without the State of New York, as shall be fixed by the President and stated in the notice of the meeting.

        Section 2.   Annual Meeting.    The annual meeting of shareholders for the election of Directors and the transaction of such other business as may properly come before the meeting shall be held on such business day and time as the President shall designate.

        Section 3.   Notice of Annual Meeting.    Written notice of the annual meeting shall be given to each shareholder entitled to vote, at least ten (10) days but no more than fifty (50) days prior to the meeting.

        Section 4.   Special Meetings.    Special meetings of the shareholders for any purpose or purposes may be called by the President or Board of Directors and must be called by the President or Secretary upon receipt by either of them of the written request of the holders of twenty-five (25) percent of the stock then outstanding and entitled to vote.

        Section 5.   Notice of Special Meeting.    Written notice of a special meeting, stating the time, place and purpose or purposes thereof, shall be given to each shareholder entitled to vote, at least ten (10) days but no more than fifty (50) days prior to the meeting. The notice shall also be set forth at whose direction it is being issued.

        Section 6.   Quorum.    At any meeting of the shareholders, the holders of record of a majority of the shares of stock then entitled to vote shall constitute a quorum for all purposes, except as otherwise provided by law or the Certificate of Incorporation.

        Section 7.   Voting.    Except as may be otherwise provided by the Certificate of Incorporation, at each meeting of the shareholders, every holder of stock then entitled to vote may vote in person or by proxy and shall have one vote for each share registered in his name.

        Section 8.   Adjourned Meetings.    Any meeting of shareholders may be adjourned to a designated time and place by a vote of a majority in interest of the shareholders present in person or by proxy and entitled to vote, even though less than a quorum is so present. No notice of such an adjourned meeting need be given, other than by announcement at the meeting, and any business may be transacted which might have been transacted at the meeting as originally called.

        Section 9.   Action by Written Consent of Shareholders.    Whenever by any provision of statute or of the Certificate of Incorporation or of these By-Laws, shareholders are required or permitted to take any action by vote, such action may be taken without a meeting on written consent setting forth the action so taken, signed by the holders of all outstanding shares entitled to vote thereon.

        Section 10.   Appraisal Rights.    If, at any meeting, action is proposed to be taken which would, if taken, entitle shareholders to receive payment for shares, the notice of such meeting shall include a statement of that purpose and to that effect.

ARTICLE III
DIRECTORS

        Section 1.   Number.    The number of Directors of the corporation shall be one (1), who shall hold office for one year and/or until his successor is elected and qualifies. Directors shall be elected at the annual meetings of shareholders. The number of Directors may be increased or decreased from time to time by amendment to these By-Laws made by a majority of the Board of Directors or by the shareholders. Directors need not be shareholders.

        Section 2.   Powers.    The Board of Directors may adopt such rules and regulations for the conduct of business of its meetings, the exercise of its powers and the management of the affairs of the corporation as it may deem proper, not inconsistent with the laws of the State of New York, the Certificate of Incorporation or these By-Laws.

        In addition to the powers and authorities by these By-Laws expressly conferred upon it, the Board of Directors may exercise all such powers of the corporation and do such lawful acts and things as are not by statute or by the Certificate of Incorporation or by these By-Laws directed or required to be exercised or done by the shareholders.

        Neither the Board of Directors nor any Director who is not an officer shall have (i) any day-to-day duties or responsibilities for planning, directing, organizing or carrying out gas-related operations, including gas transportation, gas sales or gas marketing activities, or (ii) any duties involving day-to-day gas purchasing, marketing, sales, transportation, operations, dispatching, storage or related activities. No Director who is an officer, operating employee or non-operating employee of a “natural gas company” (as defined in the federal Natural Gas Act of 1938, as amended) shall disclose to any Director, officer, operating employee, non-operating employee, contractor, agent or representative of the corporation either:

  any information received by such natural gas company from a nonaffiliated shipper or potential nonaffiliated shipper; or

  any information related to transportation (including storage, exchange, backhaul, displacement or other methods of transportation) of natural gas, unless such natural gas company provides that information contemporaneously to all shippers, affiliated and nonaffiliated, on its system.

        Section 3.   Meeting, Quorum, Meeting by Telephone, Action Without Meeting.    Meetings of the Board of Directors may be held at any place, either within or without the State of New York, provided a quorum be in attendance. Except as may be otherwise provided by the Certificate of Incorporation or by the corporate laws of the State of New York, a majority of the Directors in office shall constitute a quorum at any meeting of the Board and the vote of a majority of a quorum of Directors shall constitute the act of the Board.

        The Board of Directors may hold an annual meeting, without notice, immediately after the annual meeting of the shareholders. Regular meetings of the Board of Directors may be held without notice at such time and at such place as shall from time to time be determined by the Board of Directors. The Chairman of the Board (if any) or the President or Secretary may call, and at the request of any two Directors must call, a special meeting of the Board of Directors by appropriate notice. Five days’ notice is required when given personally or by telegraph, cable or facsimile transmission to each Director.

        Any one or more members of the Board of Directors or any Committee thereof may participate in a meeting of such Board or any Committee by means of a conference telephone or similar communication equipment allowing all persons participating in the meeting to hear each other at the same time. Participation by such means shall constitute presence in person at a meeting.

        Any action required or permitted to be taken by the Board of Directors or any Committee thereof may be taken without a meeting if all members of the Board or the Committee consent in writing to the adoption of a resolution authorizing the action. The resolution and the written consents thereto by the members of the Board or Committee shall be filed with the minutes of the proceedings of the Board or Committee.

        Section 4.   Resignation, Vacancies, Removal.    Any Director may resign at any time by giving written notice to the President or the Secretary. Such resignation shall take effect at the time stated therein. Except as otherwise provided in the Certificate of Incorporation or in the following paragraph, vacancies occurring in the membership of the Board of Directors, from whatever cause arising, may be filled by a majority vote of the remaining Directors, though less than a quorum.

        Any one or more of the Directors may be removed for cause by action of the Board of Directors taken by a vote of a majority of all Directors then in office at any regular or special meeting of the Board.

        Section 5.   Committees.    The Board of Directors, by resolution adopted by a majority of the entire Board, may designate from its members an Executive Committee or other committee or committees, each consisting of three or more members, and each of which shall have such powers and authority (to the extent permitted by law) as may be provided in said resolution.

        Section 6.   Compensation.    Directors, as such, shall not receive any stated salary for their services, but by resolution of the Board of Directors a fixed fee and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the Board or of any committee of the Board, provided that nothing herein contained shall be construed to preclude any Director from serving the corporation in any other capacity and receiving compensation therefor.

ARTICLE IV
OFFICERS

        Section 1.   Executive Officers.    The executive officers of the corporation shall be a President, one or more Vice-Presidents, a Treasurer and a Secretary, each of whom shall be elected annually by the Directors and shall hold office for such term as may be prescribed by the Board. All vacancies occurring among any of the offices may be filled by the Board of Directors or, in its discretion, the Board may leave unfilled at its pleasure any of the foregoing offices except the offices of President, Treasurer and Secretary. Any officer may be removed at any time with or without cause by the Board of Directors.

        Section 2.   Other Officers.    The Board of Directors may appoint such other officers and agents with such powers and duties as it shall deem necessary.

        Section 3.   The President.    The President shall, in the absence or non-election of a Chairman of the Board, preside at all meetings of the shareholders and Directors and perform such other duties as from time to time may be assigned to him by the Board of Directors. The President shall be the Chief Executive Officer of the corporation and shall perform all of the duties of the Chairman of the Board as well as those of President.

        Section 4.   The Vice-President.    The Vice-President, or if there be more than one, the Vice-Presidents (who may have such designations, if any, as the Board of Directors may determine), in the order of their seniority or in any other order determined by the Board shall, in the absence or disability of the President, exercise the powers and perform the duties of the President, and each Vice-President shall exercise such other duties as may be prescribed by the President or the Board.

        Section 5.   The Treasurer.    The Treasurer shall have custody of all funds, securities and other valuable effects of the corporation; he shall receive and give receipts and acquittances for moneys paid in on account of the corporation; he shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Directors; he shall pay out of the funds on hand all bills, payrolls and other just debts of the corporation, of whatever nature, upon maturity; he shall enter regularly, in books to be kept by him for that purpose, full and accurate accounts of all moneys received and paid out by him on account of the corporation; and he shall perform all other duties incident to the office of Treasurer and as may be prescribed by the Board.

        Section 6.   The Secretary.    The Secretary shall keep the minutes of all proceedings of the Board of Directors and of the shareholders; he shall attend to the giving and serving of all notices to the shareholders and Directors or other notice required by law or by these By-Laws; he shall affix the seal of the corporation to deeds, contracts and other instruments in writing requiring a seal, when duly signed on behalf of the corporation; he shall have charge of the certificate books and stock books and such other books and papers as the Board may direct; and he shall perform all other duties incident to the office of Secretary as the Board may prescribe.

ARTICLE V
CAPITAL STOCK

        Section 1.   Form and Execution of Certificates.    Certificates of stock shall be in such form as required by the laws of the State of New York and as shall be adopted by the Board of Directors. They shall be numbered and registered in the order issued, shall be signed by the President or a Vice-President and by the Secretary or the Treasurer and shall be sealed with the corporate seal or a facsimile thereof. If such a certificate is countersigned by a transfer agent or registered by a registrar, the signatures of any such officers may be facsimile.

        Section 2.   Transfer.    Transfer of shares shall be made only upon the books of the corporation by the registered holder in person or by attorney, duly authorized, and upon surrender of the certificate or certificates for such shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer. A record shall be made of each transfer, and whenever a transfer shall be made for collateral security, and not absolutely, it shall be so expressed in the entry of the transfer on the record of shareholders of the corporation.

        Section 3.   Lost or Destroyed Certificates.    The holder of any certificate representing shares of stock of the corporation may notify the corporation of any loss, theft or destruction thereof, and the Board of Directors may thereupon, in its discretion, cause a new certificate for the same number of shares, to be issued to such holder upon satisfactory proof of such loss, theft or destruction, and the deposit of indemnity by way of bond or otherwise, in such form and amount and with such surety or sureties as the Board of Directors may require, to indemnify the corporation against loss or liability by reason of the issuance of such new certificates.

        Section 4.   Record Date.    In lieu of closing the books of the corporation, the Board of Directors may fix in advance a date, not exceeding fifty days nor less than ten days, as the record date for the determination of shareholders entitled to receive notice of, or to vote at, any meeting of shareholders, or to consent to any proposal without a meeting, or for the purpose of determining shareholders entitled to receive payment of any dividends, or allotment of any rights, or for the purpose of any other action.

ARTICLE VI
MISCELLANEOUS

        Section 1.   Dividends.    Subject to the applicable provisions of the Certificate of Incorporation, the Board of Directors may declare dividends from time to time upon the capital stock of the corporation from the surplus or net profits available therefor.

        Section 2.   Fiscal Year.    The fiscal year of the corporation shall begin on the 1st day of October in each calendar year and end on the 30th day of September of the next succeeding calendar year.

        Section 3.   Checks, Notes, etc.    Checks, notes, drafts, bills of exchange and orders for payment of money shall be signed or endorsed in such manner as shall be determined by the Board of Directors.

        The funds of the corporation shall be deposited in such bank or trust company, and checks drawn against such funds shall be signed in such manner as may be determined from time to time by the Board of Directors.

        Section 4.   Notice and Waiver of Notice.    Any notice required to be given under these By-Laws may be waived by the person entitled thereto, in writing, by telegram, cable, facsimile transmission or radiogram, and the presence of any person at a meeting shall constitute waiver of notice thereof as to such person.

        Whenever any notice is required by these By-Laws to be given, personal notice is not meant unless expressly so stated; and any notice so required shall be deemed to be sufficient if given by depositing it in a post office or post box in a sealed postpaid wrapper, addressed to such shareholder, officer or director, at such address as appears on the books of the corporation, and such notice shall be deemed to have been given on the day of such deposit.

ARTICLE VII
INDEMNIFICATION AND INSURANCE

        Section 1.   Indemnification.    Any person made a party to an action or proceeding, by reason of the fact that he, his testator or his intestate is or was a director or officer of the corporation, or of any other corporation, domestic or foreign, that he, his testator or intestate served in any capacity at the request of the corporation, shall be indemnified by the corporation against the expenses (including attorney’s fees, judgments, fines and amounts paid in settlement) actually incurred by him as a result of such action or proceeding, or any appeal therein, to the full extent permissible.

        Section 2.   Insurance.    The corporation may purchase and maintain insurance to indemnify the corporation and the directors and officers to the extent permitted.

ARTICLE VIII
AMENDMENTS

        Section 1.    The authority to make, alter, amend or repeal these By-Laws is expressly vested in the Board of Directors, subject to the power of the shareholders to change or repeal such By-Laws.

EX-99.B 9 ex99-8.htm BYLAWS OF MONTENERO ENERGIA Montenero Energia S.R.L. By-Laws

ex99-8

BY-LAWS

Article 1 — Name

“MONTENERO ENERGIA S.R.L.” a limited liability company (the “Company”) is hereby incorporated.

Article 2 — Registered Office

2.1     The registered office of the Company is in Rome.

2.2

 The Company may establish secondary offices, branches, administrative, commercial, representative offices and agencies provided that they are established in Italy. In order to establish secondary offices, a resolution of the Quotaholders’ meeting voted by the majority indicated in Article 10.4 is necessary, while a Board of Directors’resolution will be necessary to (i) transfer the registered office and/or the secondary offices within the same Municipality, or (ii) establish offices, agencies, representative or sale offices which are not secondary offices.


Article 3 — Duration

Except as otherwise provided by law, the Company will exist until September 30, 2042.

Article 4 — Company’s Objects

4.1 The Company’s objects are:
a)     design, engineering, permitting, finance, site acquisition, construction, commissioning, operation, maintenance and decommissioning of an electric power plant at Montenero di Bisaccia, Molise Region, Italy, such plant having a nominal capacity of approximately 400 (four hundred) MW (hereinafter the “Project”);
b) procurement and purchase of industrial products, materials, supplies, services and equipment necessary or desirable for the purpose of performing activities related to power generation, including fuel procurement and management, waste disposal activities and appointment of contractors and advisers, in each case in connection with the Project;
c) production and sale of electrical energy in all its forms, in each case in connection with the Project; and
d) carrying out of activities relating to real estate including construction, sale and purchase, management and leasing of real estate, in each case in connection with the Project; in accordance with the laws in force in Italy from time to time.

4.2 In accordance with its corporate objects, the Company may carry out the purchase, holding and management of registered or non-registered rights relating to the share capital of other companies or businesses having a purpose which is analogous, similar or connected to its own purpose. It may also carry out the technical, administrative and financial coordination of affiliated companies (subsidiaries and associated companies forming part of the same group) through the provision of business management services, the preparation of statistical, accounting and technical data, and the preparation of data relating to any form of payment, or the giving of guarantees and financing. The Company may not carry out such activities for the public, in accordance with the decrees of the Ministry of the Treasury dated July 6, 1994 (published in the Official Gazette on July 22, 1994, no. 170), and any other activities of a financing or professional nature, which may be precluded by law without the appropriate licences or qualifications.

4.3 In accordance with its corporate objects, the Company may borrow, carry out any activity relating to mortgages or charges (including subrogation), both active and passive, give security interests of all kinds in any of its property or assets in support of the payment of its borrowings including without limitation establishing collateral deposits and assigning rights under insurance contracts and assigning any other contractual rights authorise registrations of property and entries in the property register and give guarantees (including sureties, endorsements and warrants to grant credit).

4.4 The following activities are prohibited:
i) activities that by their very nature or manner of exercise are reserved to banks or to financial intermediaries in general, and in any case any activity involving the collection of savings from the public or the solicitation of public savings;
ii) activities reserved to financial intermediaries according to Legislative Decrees no. 385/1993 and no. 58/1998 (as amended), and the other activities pursuant to special laws governing the relevant matter.

Article 5 — Corporate Capital

5.1 The Company’s corporate capital amounts to Euro 10,000.00 (ten thousand euro) divided into quotas in compliance with the law.

5.2 The corporate capital may be increased, including through contributions in kind, by the Quotaholders’ meeting resolutions.

Article 6 — Pledging of Quotas

Quotas and any rights deriving from or connected to quotas, such as option rights, beneficial interests, distribution rights or other similar rights (hereinafter the “Rights”) may be pledged or given as security, and may be burdened by liens, encumbrances, pre-emptive rights, third party rights or other restrictions subject to the laws in force in Italy from time to time.

Article 7 — Transfers of Quotas

Quotas and Rights are freely alienable and may be assigned, transmitted or transferred, directly and/or indirectly, in whole or in part, to third parties or Quotaholders, by any means whatsoever, subject to the laws in force in Italy from time to time.

Article 8 — Financing

8.1 The Company shall be entitled to obtain financing (subject to a liability for repayment of such financing) from its Quotaholders, within the limits and methods prescribed by law and these By-Laws.

8.2 Quotaholders may make capital contributions to the Company which do not result in the issuance of additional quotas and may do so in proportions different than the proportions of quotas then held by them.

Article 9 — Quotaholders’ Meetings

9.1 Meetings, properly called and validly constituted, and the resolutions thereof made in accordance with the law and these By-Laws bind all Quotaholders, including non-participating or dissenting Quotaholders. Meetings may be ordinary or extraordinary, in accordance with the law and these By-laws.

9.2 Meetings are called by the Board of Directors in order to vote on the matters reserved to the Quotaholders’ meeting, or when Quotaholders, together representing at least 20% of the corporate capital, request the Board of Directors to call a meeting. The request must indicate the matters on which the meeting shall vote.

9.3 An ordinary meeting must be called at least once a year, within 120 days from the fiscal year end, in order to approve the annual accounts. In the event of particular needs related to the Company’s structure and corporate purpose or in the event the Company is obliged to draft the consolidated financial statements, the meeting may be called within 180 days from such fiscal year end.

9.4 Ordinary and extraordinary meetings shall take place at the registered office, or elsewhere in any EU Member State, as notified to Quotaholders.

9.5 Notices of meeting are made by registered letter (with a courtesy copy by facsimile transmission and e-mail) sent to the Quotaholders at least eight days before the meeting. Such notices are to be sent to the address indicated in the Register of Quotaholders.

9.6 The notice of meeting must contain the date, location and time of meeting and a list of matters to be discussed, together with the necessary informative documentation.

9.7 The Quotaholders’ meeting is deemed to be legally and validly constituted even though a valid notice of the meeting has not been sent, if the Quotaholders together representing the whole corporate capital, and all the directors and auditors and accountants (if appointed) attend the, or have been informed of, the meeting and its agenda and none of them objects the discussion on the relevant matters. The directors, auditors or accountants (if any) who do not attend the meeting shall make a formal statement specifying that they have been informed and do not object the discussion on the matters contained in the agenda. The final resolutions shall be timely communicated by the Chairman of the Quotahoders’ meeting to the non-attending directors and auditors and/or accountants.

9.8 Quotaholders’ meetings may be also attended by videoconference or teleconference provided that the following conditions are met and certified in the relevant minutes:

a) The Chairman and the Secretary of Quotaholders’ meeting (if appointed) attend the meeting in the same place and draft and sign the minutes. The meeting shall be considered as being held in such a place;

b) The Chairman has the possibility to identify all the participants, control the carrying out of the meeting and ascertain and declare the voting results;

c) The person who drafts the minutes is fully aware of all the events of the meeting;

d) All the participants are able to discuss the matters contained in the agenda and simultaneously vote them, and review, receive and transmit documents; and

e) In each place which is connected by videoconference or conference call an attendance sheet certifying all the persons attending the meeting in that place is prepared.

Article 10 — Voting and Matters for Quotaholder Meetings

10.1 All those who are registered in the Register of Quotaholders may participate in meetings.

10.2 Voting is granted proportionally to the stakes owned by each Quotaholder. Votes cast passes resolutions by a roll call conducted by the Chairman.

10.3 An ordinary meeting, properly constituted, may vote and may pass resolutions if Quotaholders, together representing in person or by proxy at least 75% (seventy-five per cent) of the corporate capital, vote in favour of the resolution.

10.4 An extraordinary meeting, properly constituted, may vote and may pass resolutions if Quotaholders, together representing in person or by proxy at least 75% (seventy-five per cent) of the corporate capital, vote in favour of the resolution.

10.5 In addition to the matters reserved to an ordinary Quotaholders’ meeting by law, an ordinary Quotaholders’ meeting shall also approve the following matters:
a)     incurring indebtedness other than unsecured loans from Quotaholders or their affiliates which (i) are repayable upon third party financing being provided for the Project or as provided in such third party financing for the Project and (ii) provide for interest to accrue and be capitalized quarterly; and
b) an investment in any other company.

Article 11 — Proxies

11.1 Quotaholders may be also represented by a non-Quotaholder by means of a written proxy which may be also granted to the members of the board of directors or auditors of both the Company and controlled companies. The proxy is valid for just one meeting.

11.2 The validity of proxies and their right to participate in meetings falls within the competence of Chairman of the Meeting.

Article 12 — Chairman of Quotaholders’ Meeting

12.1 Quotaholders’ meetings are chaired by a Chairman who shall be elected by the Quotaholders. The Chairman is assisted by a Secretary appointed by the meeting, who need not be chosen from amongst the Quotaholders.

12.2 Meeting resolutions must be certified by minutes signed by the Chairman and by the Secretary or, in those circumstances required by law, the minutes must be prepared by a notary.

Article 13 — Appointment of Directors

13.1 The Company is exclusively administered by a Board of Directors consisting of six members, appointed by an ordinary Quotaholders' meeting, who hold office for a maximum of three fiscal years, and who may be re-elected.

13.2 Directors may be non-Quotaholders.

Article 14 — Competence of Board of Directors

The Board of Directors shall be entrusted with the widest legally permissible powers for the ordinary and extraordinary management of the Company, with the entitlement to perform all actions they will deem necessary for the achievement of the corporate objects, with the exception of those which are exclusively vested in the Quotaholders’ meeting by Italian law or these By-Laws.

Article 15 — Duration of Office

15.1 Upon their election, the Quotaholders’ meeting determines the duration of office of the members of the Board of Directors, subject to Article 13.1.

15.2 Upon each appointment (or re-appointment) of the Board of Directors, the Board shall, unless appointed by the Quotaholders’ meeting, elect a Chairman from amongst its members at its next meeting. The Board of Directors at each meeting shall appoint a Secretary, who need not necessarily be a Director.

Article 16 — Loss of Office

16.1 Except as provided in Article 16.2, if any Director ceases to hold office for any reason including resignation, the remaining Directors shall elect a new Director.

16.2 If at any time the Board of Directors consists of only three or fewer Directors, the whole Board of Directors is considered to have ceased to hold office and a meeting of the Quotaholders to appoint a new Board of Directors shall be urgently called. In the meantime, the Board of Statutory Auditors shall be in charge of the day-to-day administration of the Company.

Article 17 — Place of Directors’ Meetings

17.1 Board of Directors' meetings may be held in the registered office or elsewhere in Italy or in a EU Member State.

17.2 Board of Directors meetings may also take place by videoconference or teleconference provided the following conditions are met:
a)     all participants can be identified with certainty;
b) all participants are able to participate in the discussions, and to view, receive and transmit documents by any technical means.

Article 18 — Calling Directors’ Meetings

18.1 Meetings of the Board of Directors are to be called by the Chairman of the Board of Directors or, in his incapacity or if there is then none in office, by the oldest Director, whenever the Chairman (or oldest Director, when relevant) considers a meeting necessary or when a special written request has been made to the Chairman (or oldest Director, when relevant) for a meeting by two members of the Board of Directors, indicating matters to be discussed.

18.2 The Board Meeting is called by written notice – which must specify the date, the location, the time of meeting and the agenda, together with the necessary informative documentation – to be sent by registered letter or recognized courier service (with a courtesy copy by facsimile transmission and e-mail) to the relevant address of each Director, the Secretary and the statutory auditors not less than seven clear days [i.e., not counting the day of the notice or the day of the meeting] prior to the date fixed for the meeting, or, where urgent not less than four clear days prior to the date fixed for the meeting.

18.3 The Board of Directors is validly constituted in the absence of a valid call to meet or a timely call to meet provided that all its members and all the statutory auditors attend.

Article 19 — Conduct of Directors’ Meetings

19.1 The Chairman of the Board of Directors (or in his absence, the oldest Director) shall preside over the meetings thereof.

19.2 The quorum for the transaction of business at any meeting of the Board shall be four Directors. A quorum shall include any Director present by adequate telephone or videoconference link as provided in Article 17.2. If a quorum is not present, those directors and statutory auditors present, if they so agree, may postpone the meeting for up to 48 hours without need to give formal notice except that written notice shall be sent by facsimile transmission and e-mail to each director and statutory auditor not present advising him of the date, hour and place the meeting is to be reconvened.

19.3 At any meeting of the Board each Director shall have one vote. Any Director present by adequate telephone or videoconference link as provided in Article 17.2 shall be entitled to vote.

19.4 All decisions of the Board taken at a Board meeting shall be taken by a majority of four votes in favor.

19.5 Board resolutions are certified by minutes signed by the Chairman of the Board and the Secretary. In the absence or incapacity of the Chairman, all Directors who participated in the relevant Meeting shall certify the minutes.

Article 20 — Power of Attorney

20.1 Each member of the Board of Directors may legally represent the Company in dealings with third parties within the limits of the powers granted to him pursuant to these By-Laws and by his signature may bind the Company only with respect to obligations determining liabilities between Euro 0 and Euro 10,000.00 (ten thousands Euro).

20.2 The Managing Director (Amministratore Delegato) and the Chairman of the Board of Directors severally have signature powers that may bind the Company only with respect to obligations determining liabilities between Euro 10,000.01 (ten thousands Euro and one cent) and Euro 50,000.00 (fifty thousands Euro).

20.3 The joint signature of the Managing Director (Amministratore Delegato) and the Chairman of the Board of Directors is needed for obligations determining liabilities between Euro 50,000.01 (fifty thousands Euro and one cent) and Euro 150,000.00 (one hundred and fifty thousands Euro).

20.4 A Resolution of the Board of Directors, that will bind the Company, is needed for obligations determining liabilities in excess of Euro 150,000.00 (one hundred and fifty thousands Euro).

20.5 The Board of Directors may also appoint managers and attorneys for single acts or categories of acts, establish their functions and specify and revoke their powers, subject to any limitations imposed by law.

Article 21 — Compensation

The members of the Board of Directors and the Secretary shall not be compensated for their services as such but shall be reimbursed against presentation of appropriate documentation for costs and expenses properly incurred by them in carrying out their duties.

Article 22 — Executive Committee and Managing Director

The Board of Directors may, within the limits provided by law and by these By-Laws, delegate its powers to an executive committee comprised of at least two members as well as to its Chairman (Presidente) and one of its member who shall be appointed the Managing Director (Amministratore Delegato), acting jointly, and may terminate any such delegation at any time.

Article 23 — Executive Committee Actions

23.1 The executive committee of the Board of Directors shall be called by one of its members in accordance with the equivalent terms set forth in Article 18 or as such committee may determine. Furthermore, any such committee shall be deemed properly constituted provided that all members of the committee are present.

23.2 Meetings of the executive committee may take place by videoconference or teleconference whenever requested by any voting member provided that all participants can be identified with certainty and all participants are able to participate in the discussions, and to view, receive and transmit documents by any technical means.

23.3 Any such committee resolves those matters reserved to it by a unanimous vote of all members of such committee.

23.4 If any member of the committee ceases to hold office for any reason including resignation, the entire committee is deemed to have resigned and the Board of Directors shall appoint a new committee.

Article 24 — Balance Sheet and Profits

24.1 The fiscal year of the Company shall end on 30th September each year.

24.2 Profits will be appropriated as follows: 5% to the legal reserve until it has reached one fifth of the corporate capital; the remaining amount to be appropriated as the Quotaholders’ meeting may resolve.

24.3 If a Quotaholder’s meeting votes for the distribution of profits, such profits shall be distributed among the Quotaholders in proportion to their respective quotas.

24.4 Dividends which are not claimed within five years from the day on which they became distributable shall become the Company’s property, in accordance with Article 2949 of the Civil Code.

Article 25 — Auditors

25.1 A Board of Statutory Auditors shall be appointed by the ordinary Quotaholders’ meeting, irrespective of whether required by Italian law. The ordinary Quotaholders’ meeting will:
a) appoint a Board of Auditors comprised of three statutory auditors with two alternate auditors; and
b) designate the Chairman of the Board of Auditors; and
c) determine the annual remuneration due to each statutory auditor.

25.2 . Auditing, if mandatory, may be held by an external accountant or an internationally recognized firm of independent certified accountants as decided by the Quotaholders at the time of the appointment;

25.3 The meetings of the Board of Auditors may be also attended by videoconference or teleconference provided that the following conditions are met:
a)     all the participants may be identified with certainty; and
b) all the participants are able to (i) intervene and discuss, and (ii) view, receive and transmit documents.

The meeting shall be considered as being held where the Chairman is.

Article 26 — Winding Up

Upon the winding up of the Company at any time and for any reason, an extraordinary meeting of the Quotaholders shall determine the method of winding up and shall appoint one or more liquidators and determine their powers and remuneration.

Article 27 — Applicable Law

All matters not specifically provided for in these Articles of Association and By-laws shall be governed by the provisions of the Italian Civil Code and any other applicable laws.

EX-99 10 ex99-9.htm UNITED ENERGY AUDITOR'S REPORT Exhibit H-1

PRICEWATERHOUSECOOPERS LLC

PricewaterhouseCoopers Audit, s.r.o.
Katerinska 40
120 00 Prague 2
Czech Republic
Telephone +420 251 151 111
Facsimile +420 251 156 111
ID No. 40765521

REPORT OF INDEPENDENT AUDITORS

TO THE SHAREHOLDERS OF UNITED ENERGY, A.S.

We have audited the accompanying consolidated balance sheet of United Energy, a.s. as at 31 December 2003, the related consolidated income statement and notes, including the consolidated statement of cash flows, for the year then ended presented in the annual report of the Company on pages 36-73 (“the consolidated financial statements”). The consolidated financial statements and underlying accounting records are the responsibility of the Company’s Board of Directors. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with the Act on Auditors and Auditing Standards of the Chamber of Auditors of the Czech Republic. Those auditing standards require that we plan and perform the audit to obtain reasonable assurance as to whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion the accompanying consolidated financial statements give a true and fair view, in all material respects, of the assets, liabilities and equity of United Energy, a.s. as at 31 December 2003, and the results of its operations and its cash flows for the year then ended in accordance with the Act on Accounting and other relevant legislation of the Czech Republic.

We have examined whether the supplementary financial information included in the annual report of the Company on pages 4-29, which does not form part of the financial statements for the year ended 31 December 2003, is consistent with audited financial statements of the Company. In our opinion, all other supplementary information included in the annual report is consistent with the audited financial statements in all material respects.

In addition we have also reviewed the accompanying report on relationships of the Company on pages 76-79 (“the Report”). The completeness and accurary of the Report is the responsibility of the Board of Directors. Our responsibility is to review the accuracy of information included in the report. We conducted our review in accordance with the auditing standards of the Chamber of Auditors of the Czech Republic related to reviews of reports on relations between related parties. These standards require that we plan and perform the review to obtain moderate assurance as to whether the Report is free of material misstatement. Based on our review, nothing has come to our attention that causes us to believe that the accompanying Report has not been properly prepared, in all material respects.

29 April 2004

/s/ PricewaterhouseCoopers

PricewaterhouseCoopers Audit, s.r.o.
Represented by

/s/ Thomas Linder                          /s/ Ivana Kunova

Thomas Linder                              Ivana Kunova
Partner                                          Auditor, License No. 1784


UNITED ENERGY, a.s.
FINANCIAL STATEMENTS - BALANCE SHEET
ASSETS

                                                             12/31/2003            12/31/2002
                                                          ------------------   --------------------

                                                                        (CZK 000's)

Total Assets                                                      6,673,733              6,668,201
                                                          ==================   ====================

Fixed Assets                                                      5,807,964              6,093,037
                                                          ------------------   --------------------

    Intangible Fixed Assets                                           3,471                  3,558
                                                          ------------------   --------------------

        Software                                                      2,499                  1,581
        Intangible Assets in the Course of Construction                 972                  1,977
                                                          ------------------   --------------------

    Tangible Fixed Assets                                         5,592,844              5,877,781
                                                          ------------------   --------------------

        Land                                                         42,445                 43,794
        Constructions                                             1,435,875              1,477,577
        Equipment                                                 3,613,295              3,848,457
        Other Tangible Fixed Assets                                      18                     18
        Tangible Assets in the Course of Construction               472,560                473,675
        Advances Paid for Tangible Fixed Assets                      28,651                 34,260
                                                          ------------------   --------------------

    Long-Term Investments                                           211,649                211,698
                                                          ------------------   --------------------

        Investments in Subsidiaries                                 211,643                211,643
        Investments in Associates                                         -                     49
        Other Financial Investments                                       6                      6
                                                          ------------------   --------------------

Current Assets                                                      863,789                572,490
                                                          ------------------   --------------------

    Inventories                                                      91,972                 93,981
                                                          ------------------   --------------------

        Raw Materials                                                91,972                 93,981
                                                          ------------------   --------------------

    Long-Term Receivables                                             2,274                  6,432
                                                          ------------------   --------------------

        Long-Term Trade Receivables                                   2,274                  6,432
                                                          ------------------   --------------------

    Short-Term Receivables                                          154,559                164,700
                                                          ------------------   --------------------

        Trade Receivables                                           152,463                163,520
        Taxes Receivables and State Subsidies Receivable              1,141                    533
        Other Receivables from Group Undertakings                         -                      -
        Other Receivables                                               955                    647
                                                          ------------------   --------------------

    Financial Assets                                                614,984                307,377
                                                          ------------------   --------------------

        Cash in Hand                                                    237                  2,434
        Cash at Bank                                                 36,637                 38,844
        Short-Term Investments                                      578,110                266,099
                                                          ------------------   --------------------

Other Assets                                                          1,980                  2,674
                                                          ------------------   --------------------

    Accruals and Deferrals                                            1,918                  1,068
                                                          ------------------   --------------------

        Prepaid Expenses                                              1,875                  1,059
        Accrued Revenue                                                  43                      9
                                                          ------------------   --------------------

    Anticipated Assets                                                   62                  1,606
                                                          ------------------   --------------------


UNITED ENERGY, a.s.
FINANCIAL STATEMENTS - BALANCE SHEET
LIABILITIES AND OWNER'S EQUITY

                                                              12/31/2003           12/31/2002
                                                           -----------------   --------------------

                                                                         (CZK 000's)

Total Liabilities and Equity                                      6,673,733              6,668,201
                                                           =================   ====================

Equity                                                            5,285,272              4,858,220
                                                           -----------------   --------------------

    Registered Capital                                            1,912,932              1,912,932
                                                           -----------------   --------------------

       Registered Capital                                         1,912,932              1,912,932
                                                           -----------------   --------------------

    Capital Contributions                                           252,805                252,586
                                                           -----------------   --------------------

       Share Premium                                                226,656                226,656
       Other Capital Contributions                                   26,149                 25,930
                                                           -----------------   --------------------

    Reserve Funds                                                   339,157                324,864
                                                           -----------------   --------------------

       Statutory Reserve Fund                                       335,748                321,829
       Statutory and Other Reserves                                   3,409                  3,035
                                                           -----------------   --------------------

    Retained Earnings                                             2,349,403              2,089,445
                                                           -----------------   --------------------

       Retained Profits                                           2,349,403              2,089,445
                                                           -----------------   --------------------

    Profit (Loss) for the Current Period (+/-)                      430,975                278,393
                                                           -----------------   --------------------

Liabilities                                                       1,364,360              1,788,992
                                                           -----------------   --------------------

    Provisions                                                      541,753                538,267
                                                           -----------------   --------------------

       Non-Deductible Provisions                                     80,070                 25,112
       Deferred Tax Liability                                       461,683                513,155
                                                           -----------------   --------------------

    Long-Term Liabilities                                             1,623                  1,818
                                                           -----------------   --------------------

       Other Long-Term Liabilities                                    1,623                  1,818
                                                           -----------------   --------------------

    Short-Term Liabilities                                          399,828                353,931
                                                           -----------------   --------------------

       Trade Payables                                               378,060                329,432
       Liabilities to Shareholders/Owners                               125                    227
       Payroll Payable and Other Liabilities to Employees            11,377                 10,882
       Liabilities for Social Insurance                               6,745                  6,176
       Taxes and State Subsidies Payable                              3,232                  7,021
       Other Payables                                                   289                    193
                                                           -----------------   --------------------

    Bank Loans & Overdrafts                                         421,156                894,976
                                                           -----------------   --------------------

       Long-Term Bank Loans                                         218,750                569,363
       Short-Term Bank Loans and Overdrafts                         202,406                325,613
                                                           -----------------   --------------------

Other Liabilities                                                    24,101                 20,989
                                                           -----------------   --------------------

    Accruals and Deferrals                                              409                    379
                                                           -----------------   --------------------

       Accruals                                                         409                    379
                                                           -----------------   --------------------

    Anticipated Liabilities                                          23,692                 20,610
                                                           -----------------   --------------------


UNITED ENERGY, a.s.
FINANCIAL STATEMENTS - INCOME STATEMENT


                                                                                   12/31/2003            12/31/2002
                                                                                ------------------   --------------------

                                                                                              (CZK 000's)

Sale of Production (A)                                                                  2,793,059              2,854,751
                                                                                ------------------   --------------------

     Sales of Own Products and Services                                                 2,792,954              2,854,596
     Own Work Capitalized                                                                     105                    155
                                                                                ------------------   --------------------

Cost of Sales (B)                                                                       1,676,763              1,707,428
                                                                                ------------------   --------------------

     Raw Materials and Consumables                                                      1,367,609              1,373,902
     Services                                                                             309,154                333,526
                                                                                ------------------   --------------------

Added Value (A)-(B) (+)                                                                 1,116,296              1,147,323
                                                                                ------------------   --------------------

Staff Costs (-)                                                                           251,666                239,397
                                                                                ------------------   --------------------
     Wages and Salaries                                                                   182,899                173,152
     Emoluments of Board Members                                                              933                    997
     Social Security Costs                                                                 63,458                 60,755
     Other Social Costs                                                                     4,376                  4,493
                                                                                ------------------   --------------------
Taxes and Charges (-)                                                                       3,240                  4,431
Depreciation of Long-Term Assets (-)                                                      371,006                370,486
Sale of Long-Term Assets and Raw Materials (+)                                             11,702                 20,981
Net Book Amount of Long-Term Assets and Raw Materials Sold (-)                                682                 12,273
Increase / (decrease) in Operating Provisions and Complex Prepaid Expenses (-)             30,264                 35,935
Other Operating Income (+)                                                                  3,055                  2,129
Other Operating Charges (-)                                                                41,254                 55,868
                                                                                ------------------   --------------------

Operating Result (C)                                                                      432,941                452,043
                                                                                ------------------   --------------------

Income from Sales of Securities and Shares (+)                                                  1                      -
Securities and Shares Sold (-)                                                                  -                      -
Income from Long-Term Investments (+)                                                           2                      1
     Income from Other Long-Term Investments                                                    2                      1
Income from Short-Term Investments (+)                                                      1,254                      -
                                                                                ------------------   --------------------
Increase / (Decrease) in Financial Provisions (-)                                           2,462                  4,994
Interest Income (+)                                                                         7,795                  3,598
Interest Expense (-)                                                                        7,153                 46,173
Other Financial Income (+)                                                                 29,321                 35,325
Other Financial Expense (-)                                                                30,895                 37,060
                                                                                ------------------   --------------------

Result from Financial Transactions (D)                                                     (2,137)               (49,303)
                                                                                ------------------   --------------------

Tax on Profit or Loss on Ordinary Activities (E)                                             (171)               128,559
                                                                                ------------------   --------------------
     -current                                                                              51,301                    139
     -deferred                                                                            (51,472)               128,420
                                                                                ------------------   --------------------

Profit or Loss on Ordinary Activities After Taxation (C)+(D)-(E) = (F)                    430,975                274,181
                                                                                ------------------   --------------------

Extraordinary Income (+)                                                                        -                 13,284
Extraordinary Charges (-)                                                                       -                  9,072
                                                                                ------------------   --------------------

Profit (Loss) on Extraordinary Items After Taxation (G)                                         -                  4,212
                                                                                ------------------   --------------------

Net Profit (Loss) for the Financial Period (F)+(G)                                        430,975                278,393
                                                                                ==================   ====================

Profit (Loss) Before Taxation                                                             430,804                406,952
                                                                                ==================   ====================



UNITED ENERGY, a.s.
CASH FLOW


                                                                                     12/31/2003             12/31/2002
                                                                                  ------------------   ---------------------

                                                                                                 (CZK 000's)

Cash and Cash Equivalents at the Beginning of the Year (Q)                                  307,377                 150,205
                                                                                  ------------------   ---------------------

Net Profit (Loss) on Ordinary Activities Before Tax (A)                                     430,804                 402,740
                                                                                  ------------------   ---------------------

Adjustments for Non-Cash Movements (B)                                                      391,935                 427,184
                                                                                  ------------------   ---------------------

     Depreciation of Fixed Assets                                                           371,006                 370,486
     Change in General Provisions, Accruals and Prepayments                                  32,725                  18,507
     (Profit)/Loss from Disposal of Fixed Assets                                             (9,898)                 (4,384)
     Dividend Income                                                                         (1,256)                      -
     Net Interest Expense                                                                      (642)                 42,575
                                                                                  ------------------   ---------------------

Net Cash Flows from Ordinary Activities (A) + (B) = (C)                                     822,739                 829,924
                                                                                  ------------------   ---------------------

Working Capital Changes: (D)                                                                 29,004                  83,271
                                                                                  ------------------   ---------------------

     (Increase)/Decrease in Receivables                                                      10,805                  61,802
     Increase/(Decrease) in Short Term Payables                                              15,015                  11,211
     (Increase)/Decrease in Inventories                                                       3,184                  10,258
                                                                                  ------------------   ---------------------

Net Cash Flows from Ordinary Activities Before Tax (C) + (D) = (E)                          851,743                 913,195

Interest Paid (F)                                                                            (7,153)                (46,173)
Interest Received (G)                                                                         7,795                   3,598
Income Tax on Ordinary Activities Paid (H)                                                   (1,142)                   (672)
Cash Movements Relating to Extraordinary Profit/(Loss)
     Including Tax Paid on Extraordinary Income (I)                                               -                   4,212
Received dividends and shares from profit (J)                                                 1,256                       -
                                                                                  ------------------   ---------------------

Net Cash Flows from Ordinary Activities (E) + (F) + (G) + (H) + (I) + (J) = (M)             852,499                 874,160
                                                                                  ------------------   ---------------------

Acquisitions of Fixed Assets                                                                (79,475)                (55,581)
Proceeds from Sale of Fixed Assets                                                           12,842                  19,632
Loans to Related Parties                                                                          -                       -
                                                                                  ------------------   ---------------------

Net Cash Flows From Investing Activities (N)                                                (66,633)                (35,949)
                                                                                  ------------------   ---------------------

Change in Long Term and Short Term Liabilities (K)                                         (474,015)               (676,660)
Changes in Equity (L)                                                                        (4,244)                 (4,379)
                                                                                  ------------------   ---------------------

     Direct Payments from Reserves                                                           (3,632)                 (3,758)
     Dividends Paid                                                                            (612)                   (621)
                                                                                  ------------------   ---------------------

Net Cash Flows from Financing Activities (K) + (L) = (O)                                   (478,259)               (681,039)
                                                                                  ------------------   ---------------------

Net Increase (Decrease) in Cash and Cash Equivalents (M) + (N) + (O) = (P)                  307,607                 157,172
                                                                                  ------------------   ---------------------

Cash and Cash Equivalents at the End of the Year (P) + (Q)                                  614,984                 307,377
                                                                                  ==================   =====================

EX-99 11 ex99-10.htm TEPLARNA LIBEREC AUDITOR'S REPORT Exhibit H-2

PRICEWATERHOUSECOOPERS LLC

PricewaterhouseCoopers Audit, s.r.o.
Katerinska 40
120 00 Prague 2
Czech Republic
Telephone +420 (2) 5115 1111
Facsimile +420 (2) 5115 6111
ID No. 40765521

REPORT OF INDEPENDENT AUDITORS

TO THE SHAREHOLDERS OF TEPLARNA LIBEREC, A.S.

We have audited the accompanying balance sheet of Teplárna Liberec, a.s. as at 31 December 2003, the related income statement and notes, including the statement of cash flows overview of changes in equity, for year 2003 stated in the Annual Report (“the financial statements”). The financial statements and underlying accounting records are the responsibility of the Company’s Board of Directors. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Act on Auditors and Auditing Standards of the Chamber of Auditors of the Czech Republic. Those auditing standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the accompanying financial statements present fairly, in all material respects, the assets, liabilities and equity of Teplárna Liberec, a.s. as at 31 December 2003, and the results of its operations and its cash flows and changes in equity for the year then ended in accordance with the Act on Accounting and other relevant legislation of the Czech Republic.

We examined the agreement of accounting information in this Annual Report that are not included in the financial statements as at December 31, 2003, with the examined financial statements. In our opinion this information in all material respects corresponds with these financial statements.

Then, we examined the attached Report on relations between related persons (the “Report”), included in this Annual Report. Completeness and correctness of the Report are the responsibility of the Company’s Board of Directors. Our responsibility is to examine the correctness of data listed in the Report. We conducted our audit in accordance with the Auditing Standards of the Chamber of Auditors of the Czech Republic relating to examination of reports on relations between related persons.

Those auditing standards require that we plan and perform the audit to obtain medium level of assurance as to whether the Report is free of material misstatement. During our examination, we found no facts that would lead us to assumption that the attached Report was not prepared properly in all material respects.

30 April 2004

/s/ PricewaterhouseCoopers

PricewaterhouseCoopers Audit, s.r.o.
Represented by

/s/ Thomas Linder                          (illegible signature)

Thomas Linder                              Ivana Kunova
Partner                                          Auditor, License No. 1784


TEPLARNA LIBEREC, a.s.
FINANCIAL STATEMENTS - BALANCE SHEET
ASSETS

                                                                                12/31/2003               12/31/2002
                                                                           ---------------------   ------------------------

                                                                                             (CZK 000's)

Total Assets                                                                            548,336                    573,026
                                                                           =====================   ========================

Fixed Assets                                                                            397,380                    386,717
                                                                           ---------------------   ------------------------

     Intangible Fixed Assets                                                              2,501                        262
                                                                           ---------------------   ------------------------

         Software                                                                         2,483                        233
         Royalties                                                                           18                         29
                                                                           ---------------------   ------------------------

     Tangible Fixed Assets                                                              394,879                    386,455
                                                                           ---------------------   ------------------------

         Land                                                                             7,467                      7,467
         Constructions                                                                  150,096                    131,927
         Equipment                                                                      219,598                    237,675
         Other Tangible Fixed Assets                                                      5,752                      5,749
         Tangible Assets in the Course of Construction                                   11,966                      3,287
         Advances Paid for Tangible Assets                                                    -                        350
                                                                           ---------------------   ------------------------

Current Assets                                                                          150,563                    183,437
                                                                           ---------------------   ------------------------

     Inventories                                                                          5,500                      4,820
                                                                           ---------------------   ------------------------

         Raw Materials                                                                    5,500                      4,820
                                                                           ---------------------   ------------------------

     Short-Term Receivables                                                              62,809                     80,167
                                                                           ---------------------   ------------------------

         Trade Receivables                                                               47,272                     64,069
         Tax Receivables and State Subsidies Receivable                                  15,443                     16,016
         Other Receivables                                                                   94                         82
                                                                           ---------------------   ------------------------

     Financial Assets                                                                    82,254                     98,450
                                                                           ---------------------   ------------------------

         Cash in Hand                                                                        45                         63
         Cash in Bank                                                                     1,709                      3,387
         Short-Term Investments                                                          80,500                     95,000
                                                                           ---------------------   ------------------------

Other Assets                                                                                393                      2,872
                                                                           ---------------------   ------------------------

     Accruals and Deferrals                                                                 393                      2,181
                                                                           ---------------------   ------------------------

         Prepaid Expenses                                                                   393                        497
         Accrued Revenue                                                                      -                      1,684
                                                                           ---------------------   ------------------------

     Anticipated Assets                                                                       -                        691
                                                                           ---------------------   ------------------------


TEPLARNA LIBEREC, a.s.
FINANCIAL STATEMENTS - BALANCE SHEET
LIABILITIES AND OWNER'S EQUITY

                                                                                12/31/2003               12/31/2002
                                                                           ---------------------   ------------------------

                                                                                             (CZK 000's)

Total Liabilities and Equity                                                            548,336                    573,026
                                                                           =====================   ========================

Equity                                                                                  467,168                    483,949
                                                                           ---------------------   ------------------------

     Registered Capital                                                                 500,000                    500,000
                                                                           ---------------------   ------------------------

         Registered Capital                                                             500,000                    500,000
                                                                           ---------------------   ------------------------

     Reserve Funds                                                                        2,052                      1,628
                                                                           ---------------------   ------------------------

         Statutory Reserve Fund                                                           1,269                        765
         Statutory and Other Reserves                                                       783                        863
                                                                           ---------------------   ------------------------

     Retained Earnings                                                                  (19,010)                   (27,746)
                                                                           ---------------------   ------------------------

         Retained Profits                                                                   750                        750
         Accumulated Losses                                                             (19,760)                   (28,496)
                                                                           ---------------------   ------------------------

     Profit (Loss) for the Current Period                                               (15,874)                    10,067
                                                                           ---------------------   ------------------------

Liabilities                                                                              75,430                     83,567
                                                                           ---------------------   ------------------------

     Provisions                                                                          25,444                     42,863
                                                                           ---------------------   ------------------------

         Deferred Tax Liability                                                          25,444                     42,863
                                                                           ---------------------   ------------------------

     Short-Term Liabilities                                                              49,986                     40,704
                                                                           ---------------------   ------------------------

         Trade Payables                                                                  46,163                     36,528
         Payroll Payable and Other Liabilities to Employees                               2,177                      2,399
         Liabilities for Social Insurance                                                 1,274                      1,359
         Tax Liabilities                                                                    359                        400
         Other Payables                                                                      13                         18
                                                                           ---------------------   ------------------------

Other Liabilities                                                                         5,738                      5,510
                                                                           ---------------------   ------------------------

     Accruals and Deferrals                                                               1,116                        229
                                                                           ---------------------   ------------------------

         Accruals                                                                         1,116                        229
         Deferred Revenue                                                                     -                          -
                                                                           ---------------------   ------------------------

     Anticipated Liabilities                                                              4,622                      5,281
                                                                           ---------------------   ------------------------


TEPLARNA LIBEREC, a.s.
FINANCIAL STATEMENTS - INCOME STATEMENT


                                                                                 12/31/2003               12/31/2002
                                                                             --------------------   -----------------------

                                                                                              (CZK 000's)

Sale of Production (A)                                                                   629,517                   646,710
                                                                             --------------------   -----------------------

     Sales of Own Products and Services                                                  629,473                   646,655
     Own Work Capitalized                                                                     44                        55
                                                                             --------------------   -----------------------

Cost of Sales (B)                                                                        589,243                   564,548
                                                                             --------------------   -----------------------

     Raw Materials and Consumables                                                       420,349                   411,454
     Services                                                                            168,894                   153,094
                                                                             --------------------   -----------------------

Added Value (A)-(B) (+)                                                                   40,274                    82,162
                                                                             --------------------   -----------------------

Staff Costs (-)                                                                           45,035                    45,912
                                                                             --------------------   -----------------------
     Wages and Salaries                                                                   32,115                    32,807
     Emoluments of Board Members                                                             960                       890
     Social Security Costs                                                                11,281                    11,512
     Other Social Costs                                                                      679                       703
                                                                             --------------------   -----------------------
Taxes and Charges (-)                                                                         56                       113
Depreciation of Long-Term Assets (-)                                                      34,620                    34,944
Sale of Long-Term Assets and Raw Materials (+)                                               571                       487
Net Book Amount of Long-Term Assets and Raw Materials Sold (-)                               325                       184
Changes in Operating Reserves and Adjustments (-)                                         (2,222)                    1,694
Other Operating Income (+)                                                                 7,408                    15,433
Other Operating Charges (-)                                                                5,423                     4,077
                                                                             --------------------   -----------------------

Operating Result (C)                                                                     (34,984)                   11,158
                                                                             --------------------   -----------------------

Income from Short-Term Investments (+)                                                       211                       321
Interest Income (+)                                                                        1,986                     3,199
Other Financial Expense (-)                                                                  506                       275
                                                                             --------------------   -----------------------

Result from Financial Transactions (D)                                                     1,691                     3,245
                                                                             --------------------   -----------------------

Tax on Profit or Loss on Ordinary Activities (E)                                         (17,419)                    4,338
                                                                             --------------------   -----------------------
     -current                                                                                  -                         -
     -deferred                                                                           (17,419)                    4,338
                                                                             --------------------   -----------------------

Profit or Loss on Ordinary Activities after Taxation (C)+(D)-(E) = (F)                   (15,874)                   10,065
                                                                             --------------------   -----------------------

Extraordinary Income (+)                                                                       -                        66
Extraordinary Charges (-)                                                                      -                        64
                                                                             --------------------   -----------------------

Extraordinary Income (G)                                                                       -                         2
                                                                             --------------------   -----------------------

Net Profit (Loss) for the Financial Period (F)+(G)                                       (15,874)                   10,067
                                                                             ====================   =======================

Profit (loss) before Taxation                                                            (33,293)                   14,405
                                                                             ====================   =======================


TEPLARNA LIBEREC, a.s.
CASH FLOW STATEMENT


                                                                                       12/31/2003           12/31/2002
                                                                                    -----------------   -------------------

                                                                                                 (CZK 000's)

Cash Flow from Operations

Book Profit (-) / Loss (+) from Current Activities before Taxation                           (33,293)               14,403
                                                                                    -----------------   -------------------

Non-Pecuniary Operations Adjustments (B)                                                      30,000                32,855
                                                                                    -----------------   -------------------

    Fixed Assets Write-Offs                                                                   34,620                34,944
    Changes in Status of Adjusting Items                                                      (2,222)                1,734
    Profit (-) / Loss (+) from Fixed Asset Sale                                                 (202)                 (303)
    Settled Interest Expense and Interest Income                                              (2,196)               (3,520)
                                                                                    -----------------   -------------------

Net Cash Flow from Operations before Taxation,
    Changes in Current Assets and Extraordinary Items (A) + (B) = (C)                         (3,293)               47,258
                                                                                    -----------------   -------------------

Changes in Status of Non-Pecuniary Items of Working Capital (D)                               24,437               (10,692)
                                                                                    -----------------   -------------------

    Change in Status of Receivables and Temporary Asset Accounts                              22,071                (4,692)
    Change in Status of Short-Term Liabilities and Temporary Liabilities Accounts              2,578                (5,802)
    Change in the Status of Inventories                                                         (212)                 (198)
                                                                                    -----------------   -------------------

Net Cash Flows from Operations Before Taxation
    and Extraordinary Items (C) + (D) = (E)                                                   21,144                36,566

Received Interest (G)                                                                          2,196                 3,520
Income Tax Remitted for Current Activity (H)                                                    (329)                1,690
Extraordinary Income and Expenses and Remitted Income Tax from Extraordinary Activity (I)          -                     2
                                                                                    -----------------   -------------------

Net Cash Flow from Operations (E) + (F) + (G) + (H) + (I) = (L)                               23,011                41,778
                                                                                    -----------------   -------------------

Cash Flow from Investment Activities

Expenses Connected with Acquisition of Fixed Assets                                          (38,372)              (34,205)
Receipts from Fixed Asset Sales                                                                   72                   487
                                                                                    -----------------   -------------------

Net Cash Flow From Investment Activities (M)                                                 (38,300)              (33,718)
                                                                                    -----------------   -------------------

Cash Flow from Financial Activity

Change in Equity Status (K)                                                                     (907)                 (916)
                                                                                    -----------------   -------------------

    Direct Payments from Reserves                                                               (907)                 (916)
                                                                                    -----------------   -------------------

Net Cash Flow from Financial Activity (J) + (K) = (N)                                           (907)                 (916)
                                                                                    -----------------   -------------------

Net Increase/ Decrease of Financial Means and Cash Equivalents (L) + (M) + (N) = (O)         (16,196)                7,144

Status of Financial Means and Cash Equivalents at the Beginning of the Year (P)               98,450                91,306
                                                                                    -----------------   -------------------

Status of Financial Means and Cash Equivalents at the End of the Year (O) + (P)               82,254                98,450
                                                                                    =================   ===================

EX-99 12 ex99-11.htm ESNE FINANCIAL STATEMENTS Exhibit H-4
Energy Systems North East, LLC
Income Statement
For the Years Ended September 30, 2004 and 2003
(Unaudited)
                                                                              Year Ended                    Year Ended
                                                                          September 30, 2004            September 30, 2003
                                                                          --------------------          --------------------

Revenue - Merchant Operation                                                      $ 1,243,067                   $ 1,927,511
Expenses - Merchant Operation                                                         963,697                     1,572,387
                                                                          --------------------          --------------------
Margin - Merchant Operation                                                           279,370                       355,124
                                                                          --------------------          --------------------

Revenue - Tolling Operation                                                                 -                             -
Expenses - Tolling Operation                                                                -                             -
                                                                          --------------------          --------------------
Margin - Tolling Operation                                                                  -                             -
                                                                          --------------------          --------------------

Revenue - Steam Generation                                                          3,536,767                     3,340,775
Expenses - Steam Generation                                                         2,976,701                     3,098,668
                                                                          --------------------          --------------------
Margin - Steam Generation                                                             560,066                       242,107
                                                                          --------------------          --------------------

Capacity Revenue                                                                    1,389,252                     1,134,267
Other Operating Revenue                                                                     -                             -
                                                                          --------------------          --------------------
                                                                                    1,389,252                     1,134,267

Total Margin                                                                        2,228,688                     1,731,498
                                                                          --------------------          --------------------

Operation Expenses:
Depreciation and Amortization                                                       1,096,117                     1,096,117
General and Administrative                                                          1,439,948                     1,301,755
Utilities                                                                             507,931                       447,503
Operations and Maintenance                                                            323,498                       412,506
Operating Fee                                                                         228,199                       216,505
Other                                                                                 141,522                       247,256
                                                                          --------------------          --------------------
                                                                                    3,737,215                     3,721,642
                                                                          --------------------          --------------------

Operating Income                                                                   (1,508,527)                   (1,990,144)

Interest Income                                                                        17,373                        33,278
Interest Expense                                                                      954,820                       995,868
Other Income                                                                          351,250                       290,250
                                                                          --------------------          --------------------

Net Income                                                                       $ (2,094,724)                 $ (2,662,484)
                                                                          ====================          ====================




Energy Systems North East, LLC
Balance Sheet
September 30, 2004 and 2003
(Unaudited)
                                                                       September 30,                    September 30,
Assets                                                                     2004                             2003
                                                                    --------------------             --------------------
 Current Assets
  Cash and Cash Equivalents                                                 $ 2,126,001                      $ 3,591,615
  Accounts Receivable                                                           909,061                          480,187
  Allowance for Doubtful Accounts                                               (16,850)                               -
  Prepaid Expenses                                                              208,082                          233,423
                                                                    --------------------             --------------------
                                                                              3,226,294                        4,305,225
                                                                    --------------------             --------------------

  Property, Plant & Equipment                                                21,550,983                       21,550,983
  Less: Accumulated Depreciation                                             (3,715,069)                      (2,627,702)
                                                                    --------------------             --------------------
                                                                             17,835,914                       18,923,281
                                                                    --------------------             --------------------

                                                                    --------------------             --------------------
  Other Assets                                                                  145,104                          153,854
                                                                    --------------------             --------------------

                                                                    --------------------             --------------------
Total Assets                                                               $ 21,207,312                     $ 23,382,360
                                                                    ====================             ====================

Liabilities & Equity
 Current Liabilities
  Accounts Payables                                                         $ 1,117,370                      $ 1,156,645
  Accrued Interest                                                              954,819                          995,868
                                                                    --------------------             --------------------
                                                                              2,072,189                        2,152,513
                                                                    --------------------             --------------------

Long-Term Liabilities
  Long-Term Notes Payable                                                    23,000,000                       23,000,000

 Equity
  Beginning Equity                                                            1,000,000                        1,000,000
  Retained Earnings                                                          (4,864,877)                      (2,770,153)
                                                                    --------------------             --------------------
                                                                             (3,864,877)                      (1,770,153)
                                                                    --------------------             --------------------

                                                                    --------------------             --------------------
Total Liabilities & Equity                                                 $ 21,207,312                     $ 23,382,360
                                                                    ====================             ====================



Energy Systems North East, LLC
Statement of Cash Flows
For the Years Ended September 30, 2004 and 2003
(Unaudited)                                                                      Year Ended                    Year Ended
                                                                             September 30, 2004            September 30, 2003
                                                                            ---------------------         ---------------------
Cash Flows from Operating Activities:
  Net Income (Loss)                                                             $ (2,094,724)                 $ (2,662,484)
  Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
            Depreciation and Amortization                                          1,096,117                     1,096,117
            Change in:
            Accounts Receivable                                                     (428,874)                      813,374
            Allowance for Doubtful Accounts                                           16,850                             -
            Prepaid Expenses                                                          25,341                        41,729
            Other Assets                                                                   -                        34,981
            Accounts Payable                                                         (39,275)                     (203,991)
            Accrued Interest                                                         (41,049)                     (155,889)
                                                                        ---------------------         ---------------------
            Total adjustments                                                        629,110                     1,626,321
                                                                        ---------------------         ---------------------

                                                                        ---------------------         ---------------------
                  Net cash provided by (used in) operating activities             (1,465,614)                   (1,036,163)
                                                                        ---------------------         ---------------------

Cash Flows from Investing Activities:
  Capital expenditures                                                                     -                             -

                                                                        ---------------------         ---------------------
                  Net cash used in investing activities                                    -                             -
                                                                        ---------------------         ---------------------

Cash Flows from Financing Activities:
  Proceeds from issuance of long-term debt                                                 -                             -
  Capital contributions from partners                                                      -                             -

                                                                        ---------------------         ---------------------
                  Net cash provided by financing activities                                -                             -
                                                                        ---------------------         ---------------------

Net Increase (Decrease) in Cash and Cash Equivalents                              (1,465,614)                   (1,036,163)
Cash, Beginning of year                                                            3,591,615                     4,627,778
                                                                        ---------------------         ---------------------
Cash, End of year                                                                $ 2,126,001                   $ 3,591,615
                                                                        =====================         =====================


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