Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

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

Original Sheet No. 442 Original Sheet No. 442 : Effective

OPERATIONAL BALANCING AGREEMENT

(For Use Pursuant to Rate Schedule LMS)

(Continued)

ARTICLE IV

MISCELLANEOUS

Warranties - Operator warrants (i) that as to any gas which it

delivers or causes to be delivered to Granite State hereunder to

correct an Operational Imbalance that it will have good title to

such gas, free and clear of all liens, encumbrances and claims

whatsoever; (ii) that it will at the time of delivery have the right

to deliver or cause to be delivered such gas; (iii) that it has the

right to allocate all deliveries from the Delivery Points in accor-

dance with this Agreement, and (iv) that it will indemnify and save

Granite State harmless from suits, actions, debts, accounts, damag-

es, costs, losses and expenses arising from or out of adverse claims

of any or all persons to said gas or to royalties, overriding

royalties, taxes, or other charges thereon or with regard to the

allocation of gas hereunder. Operator represents and warrants to

Granite State that all requisite authorizations, if any, have been

obtained as to any gas which Operator delivers or causes to be

delivered hereunder.

Governing Bodies - This Agreement shall be subject to all applicable

laws, Federal or State, and to all applicable rules and regulations

of any duly authorized Federal, State or other government agency

having jurisdictions.

Waivers - No waiver by either party of any one or more defaults by

the other in the performance of this Agreement shall operate or be

construed as a waiver of any future default or defaults, whether of

a like or of different character.

Billings and Payments - Granite State shall bill and Operator shall

pay for the correction of Operational Imbalances in cash in accor-

dance with Articles 5 and 6, respectively, of the General Terms and

Conditions specified in Granite State's FERC Gas Tariff.