Midwestern Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 07/09/2004, Docket: RP04-325-000, Status: Effective

First Revised Sheet No. 427 First Revised Sheet No. 427 : Effective

Superseding: Original Sheet No. 427

MIDWESTERN GAS TRANSMISSION COMPANY

OPERATIONAL BALANCING AGREEMENT

(For Use at Delivery Points)

ARTICLE 3 - CORRECTION OF OPERATIONAL IMBALANCES

(Continued)

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

quantities where available, may be used by Company 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). Company shall make the estimated Daily

Variances and Monthly Operational Imbalances at each Delivery Point available to

Balancing Party by the third Business Day after each production day. Company or

Balancing Party may make adjustments in nominations and actual deliveries upon

24 hours notice by making imbalance make up nominations pursuant to this Agreement

and in accordance with the applicable provisions of Company's Tariff. Any such

adjustments will offset pre-existing imbalances accrued during the month.

3.3 Corrections in Subsequent Periods - As soon as practicable following the close of

each month, Company will send Balancing Party a statement setting forth the accrued

Daily Variances and the Monthly Operational Imbalance existing at the end of the

prior month. Any Monthly Operational Imbalance shall be corrected in cash in

accordance with Rate Schedule LMS-MA of Company's Tariff unless the Parties mutually

agree otherwise.

3.4 Measurement of Operational Imbalance - Any gas received or delivered pursuant to this

Agreement to correct an Operational Imbalance shall be adjusted for variation in Btu

content. Measurement of gas for all purposes shall be in accordance with Company's

FERC Gas Tariff.

3.5 Operational Integrity - Nothing in this Article 3 shall limit Company's right to take

action as may be required to adjust deliveries of gas in order to alleviate

conditions that threaten the integrity of its system.

ARTICLE 4 - TERM

4.1 Duration of Agreement - Subject to the other termination rights provided herein, this

Agreement shall be in full force and effect from the date hereof for a primary term

of one year and shall continue thereafter on a month-to-month basis unless canceled

by either Party upon thirty days' prior written notice with the termination to be

effective at the end of a calendar month. Notwithstanding the above, if any material

problem arises as a result of the provisions of this Agreement, then the Parties will

enter into good faith negotiations to amend this Agreement to resolve such problems.

4.2 Continuing Obligations - Following the termination of this Agreement, any remaining

Operational Imbalance shall be resolved in cash in accordance with Rate

Schedule LMS-MA of Company's FERC Gas Tariff Volume No. 1, unless the Parties

mutually agree otherwise.

4.3 This Agreement will terminate automatically in the event that Balancing Party fails

to pay the entire amount of any bill for service rendered by Company hereunder in

accordance with the General Terms and Conditions of Company's Tariff.