Destin Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 232 Original Sheet No. 232 : Effective

PRO FORMA

OPERATIONAL BALANCING AGREEMENT

(Continued)

Dths metered during the month at the Point. Such percentage

determined above shall be Operator's Net Imbalance Percentage for the

month and shall be used to resolve Operator's Monthly Operational

Imbalance as follows:

(i) If the Monthly Operational Imbalance results from either (A)

the total net quantities of gas delivered by Operator at the

Point during the month being greater than the total of

scheduled nominations, or (B) the total net quantities of gas

delivered by Destin at the Point during the month being less

than the total scheduled nominations, Destin shall pay

Operator for its Monthly Operational Imbalance (per Dth) at

the following prices specified for each stated percentage

level up to its Net Imbalance Percentage:

Imbalance Percentage of

Percentage Index Price

0 to 5% 100% of Low Price

> 5 to 10% 85% of Low Price

>10 to 15% 75% of Low Price

>15 to 20% 60% of Low Price

>20% 50% of Low Price

(ii) If the Monthly Operational Imbalance results from either (A)

the total net quantities of gas delivered by Operator at the

Point during the month being less than the total scheduled

nominations, or (B) the total net quantities of gas delivered

by Destin at the Point during the month being greater than

the total scheduled nominations, Operator shall pay Destin

for Operator's Monthly Operational Imbalance (per Dth) at the