Destin Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 234 Original Sheet No. 234 : Effective

PRO FORMA

OPERATIONAL BALANCING AGREEMENT

(Continued)

purposes of determining the Monthly Operational Imbalance at the

Point. Along with the invoice, ________ shall tender to the other

Party a Monthly Operational Imbalance Statement that contains

information substantially similar to that shown in Exhibit B

attached hereto.

2.3 Corrections in Subsequent Periods - If either Party discovers any measurement

errors in the actual metered quantities of gas delivered and received at the

Point which are required to be corrected by the measuring Party's FERC Gas

Tariff, then such error shall be corrected in the current calendar month by

adding to the Monthly Operational Imbalance Statement an adjustment

reflecting the measurement errors. Such adjustment in volumes resulting from

such measurement errors shall be cashed out by multiplying the adjustment by

the lesser of (i) 100% of the Index Price determined pursuant to Exhibit C

for the month in which the measurement error occurred, or (ii) 100% of the

Index Price determined pursuant to Exhibit C for the month in which the

measurement error was discovered. The correction of such measurement error

on Operator's Monthly Imbalance Statement also will reflect any

transportation charges owed by Operator under Section 2.2(b) above or credits

owed by Destin to Operator to correct previous transportation charges. The

correction shall be made to the month of flow for allocation and billing

purposes. No adjustments of actual metered quantities shall be made after

six (6) months from the month in which they were measured unless otherwise

agreed to by the Parties. If either party disputes the measurement

adjustments, it will have three (3) months after the adjustment is made to

rebut the adjustment.

ARTICLE III

TERM

3.1 Duration of Agreement - Subject to the other termination rights provided

herein, this Agreement shall be in full force and effect from the date hereof