Destin Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 10/01/1998, Docket: RP98-384-000, Status: Effective

Second Revised Sheet No. 242 Second Revised Sheet No. 242 : Effective

Superseding: First Rev. Sheet No. 242

PRO FORMA

OPERATIONAL BALANCING AGREEMENT

(Continued)

EXHIBIT C

The Index Price shall be equal to the sum of the spot prices

published by the following publications for delivery to Destin's

pipeline system during the month in which the Monthly Operational

Imbalance was incurred divided by the number of such prices utilized

by Destin as determined below:

(a) Natural Gas Intelligence Gas Price Index, "South Louisiana,"

"Southern Natural," "Average"; and

(b) Inside F.E.R.C.'s Gas Market Report, "Transcontinental Gas

Pipe Line Corp.," Mississippi, Alabama," "Index;"

Transmission," "Zone 3," "Index;"

(d) Inside F.E.R.C.'s Gas Market Report, "Koch Gateway Pipeline

Company," "South Louisiana/East Side," "Index;" and

(e) Natural Gas Intelligence Price Index, "South Louisiana,"

"Tennessee Line 500," "Average."

With respect to Inside F.E.R.C.'s Gas Market Report, Destin will

use the posting published for the first of the month only. With

respect to Natural Gas Intelligence Gas Price Index, Destin will use

the weekly postings published during the month within the following

parameters. The first weekly posting to be used will be the first

issue of Natural Gas Intelligence Gas Price Index published during

the month. The last weekly posting to be used will be the last

issue of said publication published no later than two (2) business

days prior to the nomination deadline set forth in the currently

effective Volume No. 1 of Destin's FERC Gas Tariff for

transportation service for the first day of the following month.