Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

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

Original Sheet No. 177 Original Sheet No. 177

OPERATIONAL BALANCING AGREEMENT

(For Use Pursuant to Rate Schedule LMS)

(Continued)

Allocation of Variances - The difference on any day between

the scheduled quantities set forth above and the actual quantity

delivered at the Delivery Point(s) shall be the Daily Operational

Imbalance and shall be allocated to this Agreement. The

difference between the sum of the scheduled quantities set forth

above during a calendar month shall be the Monthly Operational

Imbalance. Any Operational Imbalances will be corrected in

accordance with Article II.

Reports on Actual Deliveries - Should Granite State not

have the ability to monitor actual deliveries at any Delivery

Point on a daily basis, Operator shall provide to Granite State

the best available information compiled on a daily basis on the

actual deliveries at such Delivery Point(s) within two business

days after the date of delivery.

ARTICLE II

CORRECTION OF OPERATIONAL PENALTIES

Correction in Flow Rates During A Day - Operator will be

able to request adjustments to actual deliveries at its Delivery

Points at any time during the day by coordinating with Granite

State's gas dispatchers. Granite State will use reasonable efforts

to deliver those changed quantities when the operating conditions

on Granite State's system permits, taking into consideration the

nominations made by firm customers on Granite State's system.

Corrections During the Month - Estimated metered

quantities, or actual metered quantities where available, may be

used by Granite State for purposes of adjustments under this

Section on a daily basis during the month to determine the

estimated Operational Imbalance at all of the Delivery Point(s).

Granite State shall make the estimated Daily and Monthly

Operational Imbalance at each