Viking Gas Transmission Company

First Revised Volume No. 1

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

Second Revised Sheet No. 128 Second Revised Sheet No. 128 : Effective

Superseding: First Revised Sheet No. 128

OPERATIONAL BALANCING AGREEMENT

(For Use at Delivery Point(s))

ARTICLE II

CORRECTION OF OPERATIONAL IMBALANCES

(Continued)

2.2 Corrections During the Month - Estimated metered quantities, or actual metered

quantities where available, may be used by Company for purposes of adjustments under

this Section on a daily basis during the production month to determine the estimated

Operational Imbalance at all of the Delivery Point(s). Company shall make the

estimated Daily and Monthly Operational Imbalance at each Delivery Point available

to Balancing Party within three (3) Business Days after each production day.

Adjustments in nominations and actual deliveries will be made by Balancing Party

during the production month to adequately control imbalance levels. If Balancing

Party fails to take such corrective action, Company may, upon forty-eight (48) hours

notice, adjust the nominations and actual deliveries during the remainder of the

production month to adequately control imbalance levels. Any such adjustments will

be incorporated in the daily nominations confirmed between Company and Balancing

Party.

2.3 Corrections in Subsequent Periods - As soon as practicable following the close of

each month, Company will send Balancing Party a statement setting forth the

Operational Imbalance existing at the end of the prior month. Any Monthly

Operational Imbalance shall be corrected in cash in accordance with Rate

Schedule LMS of Company's FERC Gas Tariff, unless the parties mutually agree

otherwise.

2.4 Measurement of Operational Imbalance - Any gas received or delivered pursuant to

this Agreement to correct an Operational Imbalance shall be adjusted for variation

in Btu content. Measurement of gas for all purposes shall be in accordance with

Company's FERC Gas Tariff.

2.5 Operational Integrity - Nothing in this Article II shall limit Company's right to

take action as may be required to adjust deliveries of gas in order to alleviate

conditions which threaten the integrity of its system.

ARTICLE III

TERM

3.1 Duration of Agreement - Subject to the other termination rights provided herein,

this Agreement shall be in full force and effect from the date hereof for a primary

term of ________ and shall continue thereafter on a month-to-month basis unless

canceled by either Party upon thirty (30) days' prior written notice with the

termination to be effective at the end of a calendar month. Notwithstanding the

above, if any material problem arises as a result of the provisions of this

Agreement, then the Parties will enter into good faith negotiations to amend this

Agreement to resolve such problems. If the Parties are unable to resolve such

problems as a result of such negotiations, then either Party may terminate this

Agreement upon forty-eight (48) hours' prior written notice, with the termination to

be effective at the end of a calendar month.