Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 10/14/2005, Docket: RP05-670-000, Status: Effective

Third Revised Sheet No. 127 Third Revised Sheet No. 127 : Effective

Superseding: Second Revised Sheet No. 127

OPERATIONAL BALANCING AGREEMENT

(For Use at Delivery Point(s))

ARTICLE I

NOMINATIONS AND CONFIRMATIONS

(Continued)

1.2 Allocations Based on Confirmed Nominations - The Parties intend that the quantity

actually delivered at the Delivery Point(s) will be equal to the confirmed

nominations. Balancing Party shall use all reasonable efforts to ensure that the

quantities actually delivered at the Delivery Point(s) are equal to the confirmed

nominations. Unless prohibited by applicable law or regulation, all transportation

services and/or gas provided by Company shall be allocated each Gas Day based upon

the confirmed nominations set forth in Section 1.1 above, or by such other methods

as may be mutually agreed to by both Parties.

1.3 Allocation of Variances - The difference on any Gas Day between the confirmed

nominations set forth in Section 1.1 above and the actual quantity delivered at the

Delivery Point(s) shall be the Daily Operational Imbalance and shall be allocated to

this Agreement. The difference between the sum of the confirmed nominations set

forth in Section 1.1 above during a calendar month and the total actual quantity

delivered at the Delivery Point(s) during the calendar month shall be the Monthly

Operational Imbalance. Any Operational Imbalances will be corrected in accordance

with Article II.

1.4 Limitation on Takes - Upon notice by Company under an Operational Flow Order (OFO),

Balancing Party shall conform its takes to the terms and conditions of the OFO. If

Balancing Party fails to conform its takes to the terms and conditions of any

applicable OFO, then the excess quantities shall be treated as unauthorized overruns

under Rate Schedule LMS.

1.5 Reports on Actual Deliveries - The Balancing Party shall provide meter statements at

such Delivery Point(s) within five (5) Business Days after the close of a calendar

month. Nothing in the section will require Balancing Party to install metering

devices where none currently exist. If the Balancing Party does not provide such

information or meter statements at any Delivery Point(s), or the information

provided contains significant inaccuracies as reasonably determined by Company, and

such conditions continue for fifteen (15) days or more (whether or not such days are

consecutive) after the first notice to the Balancing Party, then this Agreement

shall terminate upon written notice from Company at the end of that calendar month

(and such Delivery Point(s) will be deleted from Exhibit A upon written notice from

Company at the end of that calendar month). Any Delivery Point which is deleted

from this Agreement in accordance with this section, may be added to Exhibit A in

the future if the Parties mutually agree.

ARTICLE II

CORRECTION OF OPERATIONAL IMBALANCES

2.1 Corrections in Flow Rates During a Day - Balancing Party will be able to request

adjustments to actual deliveries at its Delivery Points at any time during the gas

day by coordinating with Company's gas control department. Company will use best

efforts to deliver those changed quantities when the operating conditions on

Company's system permit, taking into consideration the nominations made by firm

Shippers on Company's system.