Central Kentucky Transmission Company

Original Volume No. 1

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Effective Date: 05/01/2006, Docket: CP05- 48-002, Status: Effective

Original Sheet No. 409 Original Sheet No. 409 : Effective

OPERATIONAL BALANCING AGREEMENT

(Continued)

2.4 The actual MMBtu at the Interconnection Point(s) each month will be

determined and the actual Monthly Operational Imbalance communicated by the

allocating Party to the other Party in writing as soon as possible, but in

no case later than the fifteenth day of the month following the month in

which the actual Monthly Operational Imbalances arises. The Parties shall

correct any actual Monthly Operational Imbalance by the end of the month

within which the actual Monthly Operational Imbalance is determined, or

within such longer period of time as may be agreed to by the Parties.

Deliveries of gas to correct actual Monthly Operational Imbalances may be

made between the parties at the Interconnection Point(s) set forth on

Exhibit A, or at any other point of interconnection between the respective

facilities of the Parties as may be mutually agreed to by the Parties.

2.5 Any gas volumes received and delivered to correct an Operational

Imbalance shall be adjusted for variations in Btu content in accordance

with the applicable provisions of the FERC Gas Tariff of the Party which

received the gas. Measurement of gas for all purposes hereunder shall be

in accordance with the provisions set forth in the measuring Party's then

effective FERC Gas Tariff.

2.6 In the event that a capacity constraint occurs on either Party's

pipeline system which results in curtailment of deliveries through an

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

occurred shall determine the appropriate reallocation of quantities due to

curtailment as pursuant to the provisions of Article I. If the constraint

occurs at the Interconnection Point(s), the Party which owns the meter at

the Interconnection Point shall be deemed to have the constraint on its

system.

ARTICLE III

TERM

3.1 This Agreement shall be effective and the procedures set forth in

this Agreement shall be implemented as of the day and year first above

written, and shall continue in effect month-to-month thereafter; provided,

however that either Party may terminate this Agreement at any time by

giving forty-eight (48) hours prior written notice of termination to the

other Party, to be effective at the end of the month of such notification.