Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 03/01/2000, Docket: RP00-171-000, Status: Effective

Second Revised Sheet No. 399 Second Revised Sheet No. 399 : Effective

Superseding: First Revised Sheet No. 399

OPERATIONAL BALANCING AGREEMENT (Cont'd)

transmitted by facsimile or when mailed, by either certified or ordinary mail, postage prepaid, to the post

office address of either of the Parties hereto, as the case may be, as follows:

__________________________________

Attention: _______________________

_______________________

Phone: _______________________

Fax: _______________________

Columbia Gulf Transmission Company

2603 Augusta

P. O. Box 683

Houston, Texas 77001

Attention: _______________________

Manager, Customer Services

Phone: (713) ___________

Fax: (713) ___________

A Party's phone or fax numbers or address set forth herein may be changed from time to time by giving written

notice of such change to the other Party. Such changes shall be effective upon actual receipt of such notice

by the other Party.

ARTICLE II

RECONCILIATION OF OPERATIONAL IMBALANCES

2.1 The Parties intend that the quantities of gas actually delivered and received each day at

the Interconnection Point(s) will equal the confirmed nominations, and the party controlling the flow at the

Interconnection Point(s), as set forth on Exhibit "A", shall control such flow accordingly. Each Party shall

allocate the volumes to be delivered and received at the Interconnection Point(s) among the Shippers in

accordance with the confirmed nominations. Any difference between the aggregate quantity of gas nominated and

the aggregate quantity of gas actually delivered at the Interconnection Point(s) on any given day by each Party

shall constitute the Operational Imbalance for each Party for that day (the "Daily Operational Imbalance").

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