Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 05/01/2003, Docket: RP03-352-000, Status: Effective

Original Sheet No. 469 Original Sheet No. 469 : Effective

FORM OF OPERATIONAL BALANCING AGREEMENT

(2) The Parties intend that the quantity actually delivered and

received each day at the Interconnection Point will equal the

confirmed nominations. Each Party will allocate the quantity

which is to be delivered and received at the Interconnection

Point among the Party's respective shippers pursuant to the

Scheduled Quantity. Any difference between the actual physical

flow as shown by the custody measurement facilities and the

Scheduled Quantity is the "Operational Imbalance", which will be

the responsibility of the Parties to eliminate pursuant to this

Agreement. Any Operational Imbalance shall be corrected within

thirty (30) days of the date the amount of the Operational

Imbalance is determined unless the parties agree in writing to

allow a longer period to correct the Operational Imbalance.

(3) Estimated metered quantities shall be used on a daily basis

during the current month to determine the estimated Operational

Imbalance at the Interconnection Point, with physical flow

adjustments to be made during the current month as mutually

agreed to by both Parties to adequately control imbalance levels.

(4) The physical flow at the Interconnection Point each month will be

reported in Dth's and communicated by Southern Star to __________

within one (1) business day following the specified time period

for measurement closing noted in Section 17 of the General Terms

and Conditions of Southern Star FERC Gas Tariff. Measurement of

gas for all purposes hereunder shall be in accordance with the

provisions set forth in Southern Star's then effective FERC Gas

Tariff.

(5) In the event that a capacity constraint occurs on either Party's

facilities which results in curtailment of quantities through the

Interconnection Point, the Party on whose facilities the

constraint has occurred shall determine the reallocation of

Scheduled Quantities to the shippers. Such change in Scheduled

Quantities shall be confirmed with the other party within four

(4) hours of the constraint. If the constraint occurs at the

Interconnection Point, the party which owns the custody

measurement facilities at the Interconnection Point shall be

deemed to have the constraint on its facilities.