Midwestern Gas Transmission Company

Third Revised Volume No. 1

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

First Revised Sheet No. 432 First Revised Sheet No. 432 : Effective

Superseding: Original Sheet No. 432

MIDWESTERN GAS TRANSMISSION COMPANY

OPERATIONAL BALANCING AGREEMENT

(For Aggregator at Delivery Points)

ARTICLE 2- NOMINATIONS AND CONFIRMATIONS

(Continued)

confirmation, unless mutually agreed to otherwise. Balancing Party shall notify

Company of any errors in the Scheduled Quantities within two Business Days of receipt

of such information from Company. If Balancing Party fails to confirm the quantities

to be transported and/or purchased at any Delivery 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 hours written notice to the Balancing Party by Company

for each occurrence of Balancing Party's failure to confirm, then such affected

Delivery 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 Delivery Point(s) will equal the Scheduled Quantities.

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

actually delivered at the Delivery Point(s) equal the Scheduled Quantities. Unless

prohibited by applicable law or regulation, all gas delivered by Company shall be

allocated each day based upon the Scheduled Quantities or by such other methods as

may be mutually agreed to by both Parties.

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

and the actual quantity delivered at the Delivery Point(s) shall be the Daily

Variance and shall be allocated to this Agreement. The difference between the sum of

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

delivered at the Delivery Point(s) during the calendar month shall be the Monthly

Operational Imbalance. Any Operational Imbalances will be resolved in accordance

with Article 3.

2.4 Unauthorized Overruns - On any day that Balancing Party takes gas in excess of the

Daily Limit applicable to a Delivery Point, Balancing Party shall be subject to an

Unauthorized Overrun Charge of fifteen ($15.00) for each Dekatherm of excess volumes

taken beyond a 2 percent allowable variation. The Daily Limit shall be posted in an

Operational Flow Order issued pursuant to Section 8 of Company's General Terms and

Conditions.

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

deliveries at the Delivery Point on a daily basis, Balancing Party shall provide to

Company 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.

Furthermore, the Balancing Party shall provide meter statements within three (3)

Business Days after the close of a month at any Delivery Point(s) where Company does

not operate the meter. If the Balancing Party does not provide such information or

meter statements at any Delivery 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 such Delivery Point(s) will be deleted

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

Any Delivery Point that is deleted from this Agreement in accordance with this

Section, may be added to Exhibit A in the future if the Parties mutually agree.