Viking Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2004, Docket: RP04-306-000, Status: Effective

Second Revised Sheet No. 126 Second Revised Sheet No. 126 : Effective

Superseding: First Revised Sheet No. 126

OPERATIONAL BALANCING AGREEMENT

(For Use at Delivery Point(s))

This Agreement dated and effective ____________________, 20___ is by and between

Viking Gas Transmission Company (Company), and ___________________ (Balancing Party).

Company and Balancing Party shall be collectively referred to as "Parties."

W I T N E S S E T H:

WHEREAS, Company transports natural gas to the delivery point(s) specified in

Exhibit "A" attached hereto (Delivery Point(s)) and Balancing Party receives such gas from

Company;

WHEREAS, the gas actually delivered at the Delivery Point(s) is at times different

than the quantities nominated to be transported by Company from those point(s);

WHEREAS, Company and Balancing Party desire to aggregate all quantities delivered at

all of the Delivery Point(s) for balancing purposes and to allocate the transportation of

natural gas to the Delivery Point(s) based upon confirmed nominations and to allocate any

difference between such confirmed nominations and actual deliveries at the Delivery

Point(s) (Operational Imbalance) to this Agreement;

WHEREAS, Company and Balancing Party desire to correct the Operational Imbalances in

subsequent periods in cash, unless the parties mutually agree otherwise; and

WHEREAS, Company and Balancing Party desire to implement operating rules designed to

encourage conduct that maintains Company's system balance in a manner that facilitates the

movement of gas for transportation purposes.

NOW THEREFORE, in consideration of the mutual covenants and agreements as herein set

forth, the parties hereto agree as follows:

ARTICLE I

NOMINATIONS AND CONFIRMATIONS

1.1 Confirmation of Nominations - Prior to the beginning of the month in which service

is to commence, Company and Balancing Party shall confirm the quantities nominated

to be transported by Company at the Delivery Point(s) commencing on the first day of

the month following confirmation. Any modification to such confirmed quantities

shall be confirmed by Company and Balancing Party prior to the commencement of the

revised service. Company shall provide evidence of such confirmations in writing

within two (2) Business Days after such confirmation, unless mutually agreed to

otherwise. Balancing Party shall notify Company of any errors in the confirmed

nominations within two (2) Business Days of receipt of such written evidence from

Company. If Balancing Party fails to respond to Company's request to confirm the

quantities to be transported at any Delivery Point(s) in accordance with the above,

then this Agreement shall terminate upon written notice from Company at the end of

that calendar month.