Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

Effective Date: 09/01/1993, Docket: RS92- 41-003, Status: Effective

Original Sheet No. 161 Original Sheet No. 161 : Effective

PIPELINE BALANCING AGREEMENT

(For Use at Interconnections with Interstate Pipelines)

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

actually delivered and received each day at the Interconnection Point(s) will

equal the Scheduled Quantities. Each Party will allocate quantities that are to

be delivered and received at the Interconnection Point(s) among the Shipper

Agreements and/or the Party's respective Shippers commensurate with the Scheduled

Quantities for each transaction. Any imbalance created when the actual physical

flow is different than the Scheduled Quantities will be the "Operational

Imbalance", which will be the responsibility of the Parties to eliminate pursuant

to this Agreement.

ARTICLE III - CORRECTION OF OPERATIONAL IMBALANCES

3.1 Corrections in Flow Rates During A Day - The Parties will be able to request

adjustments to actual deliveries or receipts at any time during the production day

by coordination between the Parties' gas dispatchers. Each Party will use

reasonable efforts to deliver or receive those changed quantities when the

operating conditions on each Party's system permits, taking into consideration the

nominations made by firm customers on each Party's system. In the event that an

Interconnection Points(s) is unable to achieve the scheduled flow rate, the

Parties agree that swift corrective action will be taken.

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

quantities where available, may be used by Transporter for purposes of

adjustments under this Section on a daily basis during the production month to

determine the estimated Operational Imbalance at each Interconnection Point(s).

Physical flow adjustments will be made for daily imbalances within 72 hours of

notice by Transporter unless mutually agreed to otherwise. Transporter shall

make the estimated Daily and Monthly Operational Imbalance at each delivery or

receipt meter available to Pipeline on or before the third business day after each

production day. In the event that a capacity constraint occurs on either Party's

pipeline system that results in curtailment of quantities through an

Interconnection Point(s), the Party on whose system the constraint has occurred

shall determine the reallocation of quantities to the Shippers. Such change in

allocation shall be confirmed electronically or in writing pursuant to the

provisions of Article II above. If the constraint occurs at an Interconnection

Point, the Party that operates the meter at an Interconnection Point shall be

deemed to have the constraint on its system. To the extent that a Pipeline has a

record of not meeting its balancing obligations (i.e., in-kind make-up within 72

hours), Transporter will have a right to terminate this Agreement upon 30 days

notice.