Destin Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective

Original Sheet No. 229 Original Sheet No. 229 : Effective

PRO FORMA

OPERATIONAL BALANCING AGREEMENT

(Continued)

NOW THEREFORE, the Parties agree that such Operational Imbalances at the

Point shall be treated in the following manner:

ARTICLE I

NOMINATIONS AND CONFIRMATIONS

1.1 Confirmation of Nominations - Not later than 3:30 p.m. Central Clock Time on

the day prior to the beginning of the month in which service is to commence,

Destin and Operator shall confirm the quantities nominated to be received and

delivered by the Parties at the Point commencing on the first day of the

month following the confirmation. Any modification or adjustment to such

Scheduled Quantities must be confirmed by Destin and Operator prior to the

commencement of the revised service. Neither Party shall be obligated to

revise the Scheduled Quantities in effect unless the other Party notifies it

by 3:30 p.m. Central Clock Time on the day prior to the day the change in

physical deliveries is to be made, unless the Parties mutually agree

otherwise. Destin shall provide evidence of such Scheduled Quantities (in

writing or by electronic means) on the day of such confirmation, unless

mutually agreed to otherwise. If at any time during a month Operator fails

to respond to Destin's request to confirm the quantities to be received or

delivered at the Point, then Destin may, at its option, terminate this

Agreement at the end of the current calendar month upon prior written notice

to Operator. If at any time during a month Destin fails to respond to

Operator's request to confirm the quantities to be delivered or received at

the Point, then Operator may, at its option, terminate this Agreement at the

end of the current calendar month upon prior written notice to Destin. The

Parties also agree that the provisions of this Agreement apply to any

scheduled deliveries or receipts by displacement at the Point.

1.2 Allocations Based on Scheduled Nominations - The Parties intend that the

volumes of natural gas actually delivered or received at the Point will be

equal to the Scheduled Quantities to be delivered or received. Operator

shall use all reasonable efforts to ensure that the quantities actually