Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 12/13/1993, Docket: RS93- 1-001, Status: Effective

Original Sheet No. 329 Original Sheet No. 329 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

31. OPERATIONAL BALANCING AGREEMENTS

31.3 Prerequisites to Execution: It is Transporter's intent

to negotiate and execute Operational Balancing Agree-

ments on a non-discriminatory basis with all Delivery

Point Operators. However, Transporter shall have no

obligation to negotiate and execute Operational Balanc-

ing Agreements with any Operator that:

(a) is not credit-worthy as determined pursuant to Ar-

ticle 25 of these General Terms and Conditions;

(b) does not maintain a dispatching operation which is

staffed on a continuous, around-the-clock basis;

(c) would cause an increase in the level of regulation

which Transporter is subject to prior to the exe-

cution of the applicable Operational Balancing

Agreement; or

(d) does not commit to timely determination of imbal-

ances based on reasonable available measurement

technology.

31.4 Right to Protect System Integrity: Nothing in this

Article nor any executed Operational Balancing Agreement

shall limit Transporter's rights to take action as may

be required to adjust receipts and deliveries under any

transportation agreement to reflect actual experience or

to alleviate conditions which threaten the integrity of

Transporter's pipeline system, including maintenance of

service to higher priority Shippers or services.