Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

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

Original Sheet No. 176 Original Sheet No. 176

OPERATIONAL BALANCING AGREEMENT

(For Use Pursuant to Rate Schedule LMS)

(Continued)

ARTICLE I

NOMINATIONS AND CONFIRMATIONS

Confirmation of Nominations - Prior to the beginning of the month

in which service is to commence, Granite State and Operator shall

confirm the quantities nominated to be transported by Granite

State at the Delivery Point(s) commencing on the first day of the

month following the confirmation. The quantities determined

through this confirmation and reconciliation shall be the

"Scheduled Quantities." Any modification to such scheduled

quantities shall be confirmed by Granite State and Operator prior

to the commencement of the revised service. Granite State shall

provide evidence of such scheduled quantities (in writing) within

two business days after such confir- mation, unless mutually

agreed to otherwise. Operator shall notify Granite State of any

errors in the scheduled quantities within two business days of

receipt of such information from Granite State. If Operator fails

to respond to Granite States request to confirm the quantities to

be transported at any Delivery Point(s) in accordance with the

above, then this Agreement shall terminate upon written notice

from Granite State at the end of that calendar month.

Allocations Based on Scheduled Quantities - The Parties intend

that the quantity actually delivered at the Delivery Point(s) will

be equal to the scheduled quantities. Operator shall use all

reason- able efforts to ensure that the quantities actually

delivered at the Delivery Point(s) are equal to the scheduled

quantities. Unless prohibited by applicable law or regulation, all

transportation services by Granite State shall be allocated each

day based upon the scheduled quantities set forth above, or by

such other methods as may be mutually agreed to by both Parties.