Trunkline Gas Company, LLC

Third Revised Volume No. 1

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

First Revised Sheet No. 250 First Revised Sheet No. 250 : Effective

Superseding: Original Sheet No. 250

GENERAL TERMS AND CONDITIONS

(Continued)

7. OPERATIONAL BALANCING AGREEMENTS (OBA)

7.1 For the purpose of minimizing operational conflicts between

various pipeline facilities with respect to the delivery of Gas to

and from Trunkline's facilities, Trunkline may execute an OBA with

an operator of a Point of Receipt or a Point of Delivery on

Trunkline's system (herein called OBA Party). Such OBA shall

specify the Gas custody transfer procedures to be followed by

Trunkline and OBA Party for the confirmation of scheduled

Quantities to be received by Trunkline at the Point of Receipt or

delivered by Trunkline at the Point of Delivery. Such OBA will

provide that any variance between actual Quantities and confirmed

nomination Quantities at the point where the OBA is in place for

any Gas Day shall be subject to daily scheduling and monthly

balancing provisions as set forth in Sections 5.1 and 5.2 herein

and that such daily scheduling and monthly balancing variances are

the responsibility of the OBA Party. The Tolerance Level for an

OBA shall be ten percent (10%).

To facilitate such determination of variances on a timely basis,

Trunkline and the OBA Party will agree in the OBA on necessary

measurement and accounting procedures. Trunkline shall post on

the Messenger system those Points of Receipt and Points of

Delivery at which an OBA is in effect.

7.2 On any Gas Day, at any Point of Receipt or Point of Delivery at

which an OBA is in effect, any daily scheduling variance arising

under any Service Agreement between Shipper or TABS-1 Party and

Trunkline that is attributable to variances between actual and

scheduled Quantities at such point shall be resolved pursuant to

the terms of the applicable OBA, and Shipper or TABS-1 Party shall

not be subject to a daily scheduling penalty. Confirmed

nomination Quantities will be allocated to Shipper's or TABS-1

Party's Service Agreement for purposes of monthly balancing as

described in Section 5.2 herein. When Trunkline enters into an

OBA with a regulated interstate or intrastate pipeline, Trunkline

may waive the daily scheduling provisions in Section 5.1 herein

and the monthly balancing provisions in Section 5.2 herein to

maintain operational flexibility.

7.3 Trunkline shall have no obligation to negotiate and execute an OBA

with any party.