Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 09/01/1993, Docket: RS92- 23-012, Status: Effective

Original Sheet No. 612 Original Sheet No. 612 : Effective

PIPELINE BALANCING AGREEMENT (continued)

(For Use at Interconnections with Qualifying Pipelines)

1.2 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 which are to be

delivered and received at the Interconnection Point(s) among this Agreement 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 II

CORRECTION OF OPERATIONAL IMBALANCES

2.1 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 permit, 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.

2.2 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. The Party having physical control

of the meter shall make the estimated Daily and Monthly Operational Imbalance at each

delivery or receipt meter available to the other Party on or before