Trunkline Gas Company, LLC

Third Revised Volume No. 1

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Effective Date: 07/17/2004, Docket: RP04-333-000, Status: Effective

First Revised Sheet No. 238 First Revised Sheet No. 238 : Effective

Superseding: Original Sheet No. 238

GENERAL TERMS AND CONDITIONS

(Continued)

5. TRANSPORTATION BALANCING (Continued)

(3) Operational Balancing Agreements

The contract imbalance for an OBA Party shall be based

on the difference between total actual Quantities of Gas

received or delivered through the affected meter and the

total aggregated confirmed nomination Quantities for

that meter, which shall be used as the actual Quantities

of Gas received or delivered for purposes of

Section 5.2(C) below.

(B) Minimization of Contract Imbalances for Transportation

Service Agreements

(1) Contract Imbalance Netting

In order to minimize the monthly Quantity of excess

receipts and deliveries pursuant to this Section 5.2,

all of Shipper's Transportation Service Agreements within

the same Operational Impact Area, as described in

Section 5.2(B)(3) below, shall be matched by Points of

Receipt and Points of Delivery. The total Quantity of

Gas received and delivered under Shipper's Transportation

Service Agreements within the same Operational Impact

Area shall be netted and excess receipts or excess

deliveries shall be determined only after such netting.

Such netting of contract imbalances does not relieve

Shipper of the obligation to pay all applicable

transportation charges for the Quantity of Gas actually

delivered to Shipper during the Month.

(2) Contract Imbalance Trading

(a) Shipper may authorize contract imbalances under

Shipper's Transportation Service Agreements within

the same Operational Impact Area, as described in

Section 5.2(B)(3) to be posted for trading after the

Shipper has minimized excess receipts and deliveries

by netting pursuant to Section 5.2(B)(1) above.

(b) Authorizations to post imbalances that are received

by Trunkline by 11:45 a.m. shall be effective by 8:00

a.m. the next Business Day (Central Time).

Imbalances authorized for posting shall be posted on

or before the ninth (9th) Business Day of the Month.