Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 08/09/2006, Docket: RP06-430-001, Status: Effective

Fourth Revised Sheet No. 418 Fourth Revised Sheet No. 418 : Effective

Superseding: Second Revised Sheet No. 418

MIDWESTERN GAS TRANSMISSION COMPANY

OPERATIONAL BALANCING AGREEMENT

(For Use at Receipt Points)

ARTICLE 2 - NOMINATIONS AND CONFIRMATIONS

(Continued)

If Balancing party fails to confirm the quantities to be transported at any Receipt

Point(s) in accordance with the above, and such failure continues for two Business

Days or more (whether or not such days are consecutive) after 24 hour written notice

to the Balancing Party by Company for each occurrence of Balancing Party's failure to

confirm, then the affected Receipt Point(s) shall be deleted from Exhibit A upon

written notice from Company at the end of that calendar month.

2.2 Allocations Based on Scheduled Quantities - The Parties intend that the quantity

actually delivered at the Receipt Point(s) will equal the Scheduled Quantities.

Balancing Party shall use all reasonable efforts to ensure that the quantities

actually received at the Receipt Point(s) equal the Scheduled Quantities. Unless

prohibited by applicable law or regulation, all transportation services provided by

Company shall be allocated each day in accordance with Rate Schedule LMS-PA of

Company's Tariff or by such method as may be mutually agreed to by both Parties.

2.3 Allocation of Variances - The difference on any day between the Scheduled Quantities

at all Receipt Points and the total actual quantity received at the Receipt Point(s)

shall be the Daily Variance and shall be allocated to this Agreement and resolved

pursuant to the provisions of Rate Schedule LMS-PA. The difference between the sum

of the Scheduled Quantities during a calendar month and the total actual quantity

received at the Receipt Point(s), during the calendar month shall be the Monthly

Operational Imbalance. Any Monthly Operational Imbalances will be corrected in

accordance with Article 3.

2.4 Reports on Actual Deliveries - Should Company not have the ability to monitor actual

deliveries at any Receipt Point(s) on a daily basis, Balancing Party shall provide to

Company the best available information compiled on a daily basis on the actual

receipts at such Receipt Point(s) within two Business Days after the date of receipt.

Furthermore, the Balancing Party shall provide or have provided to Company meter

statements within five (5) Business Days after the close of a calendar month at any

Receipt Point(s) where Company does not operate the meter. If the Balancing Party

does not provide such information or meter statements at any Receipt Point(s), or the

information provided contains significant inaccuracies as reasonably determined by

Company, and such conditions continue for fifteen days or more (whether or not such

days are consecutive) after the first notice to the Balancing Party, then all

affected Receipt Points shall be deleted from this Agreement upon written notice from

Company at the end of that calendar month.

2.5 Unauthorized Overruns - Balancing Party may not deliver gas at a Receipt Point in

excess of the Daily Limit applicable to a Receipt Point, Balancing Party shall be

subject to an Unauthorized Overrun Charge of fifteen dollars ($15.00) for each

Dekatherms of excess volumes delivered. The Daily Limit applicable to a Receipt

Point shall be stated in an Operational Flow Order issued pursuant to Section 8 of

the General Terms and Conditions of Company's Tariff.

ARTICLE 3 - CORRECTION OF OPERATIONAL IMBALANCES

3.1 Corrections During the Month - Estimated metered quantities, or actual metered

quantities where available, shall be used by Company for purposes of adjustments

under this Section on a daily basis during the calendar month to determine the

estimated Operational Imbalance at (all of) the Receipt Point(s). Company shall make