Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

Effective Date: 03/01/2010, Docket: RP10-322-000, Status: Effective

Original Sheet No. 135 Original Sheet No. 135

GENERAL TERMS AND CONDITIONS

(Continued)

28. OPERATIONAL BALANCING AGREEMENTS

28.1 General: Any imbalances arising under any transportation

agreement at Delivery Points from Transporter's pipeline system,

which Delivery Points are subject to Operational Balancing

Agreements as more fully described below, on the day or days such

imbalances arise, will be resolved by Transporter pursuant to the

terms of the applicable Operational Balancing Agreement.

28.2 Terms Governing: For the purpose of minimizing operational

conflicts between various natural gas facilities with respect to

the delivery of gas to and from Transporter's system, Transporter

is willing to negotiate and execute Operational Balancing

Agreements with Shippers whose natural gas facilities interconnect

with Transporter's system. Such Operational Balancing Agreements

shall specify the gas custody transfer procedures to be followed

by Transporter/Shipper for the confirmation of scheduled

quantities to be received by Transporter at Receipt Points and

delivered by Transporter at Delivery Points. Such Operational

Balancing Agreements will provide that any variance between actual

quantities and scheduled and confirmed quantities for any day

shall be resolved in-kind promptly, or pursuant to such cash out

provisions as Transporter and the Shipper may agree upon. To

facilitate such determination of variances on a timely basis,

Transporter and the Shipper will agree in the Operational

Balancing Agreement on necessary measurement and accounting

procedures. Transporter shall post on its IWS those Delivery

Points which are subject to an Operational Balancing Agreement.

Transporter will also provide to any party upon request a copy of

any executed Operational Balancing Agreement.