Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

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

Original Sheet No. 162 Original Sheet No. 162 : Effective

PIPELINE BALANCING AGREEMENT

(For Use at Interconnections with Interstate Pipelines)

3.3 Corrections In Subsequent Periods - The physical flow at each Interconnection

Point each month will be determined and communicated by Transporter to Pipeline

electronically or in writing as soon as possible during the month following the

month in question. The Parties agree to "in kind" balancing between the pipelines

when the imbalance at the end of the month is within 1% of the total monthly

Scheduled Quantities at the meter. Any "in kind" imbalance carried over from the

prior month will become part of the current Monthly Imbalance. Any imbalance

existing at the time of the implementation of a new Pipeline Balancing Agreement

will be held separately and settled independently. When the Monthly Imbalance is

greater than 1% of the monthly Scheduled Quantities at the meter, the entire

imbalance will be cashed out in accordance the LMS-PA Rate Schedule in

Transporter's FERC Gas Tariff, unless the imbalance was caused by failure of

Transporter to adjust flow control at the meter, or unless the Parties agree

otherwise.

3.4 Measurement of Operational Imbalance - Measurement of gas for all purposes shall

be in accordance with Transporter's FERC Gas Tariff.

3.5 Operational Integrity - Nothing in this Article II shall limit a Party'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 IV - TERM

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 (1) year and shall continue thereafter on a month-to-month basis unless terminated

by either Party giving thirty days' written notice, with the termination to be

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

problems arise 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.

If the Parties are unable to resolve such problems as a result of such negotiations,

then either Party may terminate this Agreement upon forty-eight (48) hours' prior

written notice with the termination to be effective at the end of a calendar month.