Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

Effective Date: 07/18/2010, Docket: RP10-853-000, Status: Effective

Second Revised Sheet No. 228 Second Revised Sheet No. 228

Superseding: First Revised Sheet No. 228

DEFAULT

OPERATOR BALANCING AGREEMENT

FORM OF AGREEMENT

(continued)

5. Operational Imbalances shall be indexed to a price (hereinafter referred to as the "Monthly Index

Price" or "MIP") which shall be calculated as follows, as may be amended from time to time:

(a) Transporter shall first determine any Operational Imbalance quantity for each month on

a dekatherm basis. Transporter shall then determine a dollar equivalent utilizing the

dekatherm quantity and the established MIP ("Dollar Valued Operational Imbalance").

(b) For Dollar-Valued Operational Imbalances remaining from previous month(s), the Dollar-

Valued Operational Imbalance remaining from the previous month(s) will be added to the

Dollar-Valued Operational Imbalance amount for the Current Month and divided by the

current month's MIP to get the volume applicable to the Operation Imbalance for the

OBA.

reported in Gas Daily's table entitled "DAILY PRICE SURVEY" for delivery into

Transporter's mainline system ____________________. (If a range of prices is shown

for any particular day, the midpoint of such range shall represent that day's price at

a particular location.) If, for any reason, Gas Daily ceases to be available for a

particular month, the MIP for that month will equal the average of the applicable

daily prices for the above-described location for the applicable month as reported in

any other generally accepted available industry publication chosen by Transporter.

(d) Prices used to calculate the MIP will be prices quoted "into the mainline" in order to

eliminate inconsistencies due to varying gathering and treating charges. Transporter

will post the MIP for each month on its Internet Website within one (1) business day

following the end of the applicable month.