Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

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

Original Sheet No. 440 Original Sheet No. 440 : Effective

OPERATIONAL BALANCING AGREEMENT

(For Use Pursuant to Rate Schedule LMS)

(Continued)

Delivery Point available to Operator by the third business day after

each day. Adjustments in nominations and actual deliveries will be

made by Operator during the month to adequately control imbalance

levels. If Operator fails to take such corrective action, Granite

State may, upon 48 hours notice, adjust the nominations and actual

deliveries during the remainder of the month to adequately control

imbalance levels. Any such adjustments will be incorporated in the

scheduled quantities.

Corrections in Subsequent Periods - As soon as practicable following

the close of each month, Granite State will send Operator a state-

ment setting forth the Operational Imbalance existing at the end of

the prior month. Any Monthly Operational Imbalance shall be cor-

rected in accordance with Rate Schedule LMS of Transporter's tariff.

Measurement of Operational Imbalance - Measurement of gas for all

purposes shall be in accordance with Granite State's FERC Gas

Tariff.

Operational Integrity - Nothing in this Article II shall limit

Granite State's right to take action as may be required to adjust

deliveries of gas in order to alleviate conditions which threaten

the integrity of its system.