Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 08/01/2004, Docket: RP04-372-000, Status: Effective

Third Revised Sheet No. 129 Third Revised Sheet No. 129 : Effective

Superseding: Second Revised Sheet No. 129

OPERATIONAL BALANCING AGREEMENT

(For Use at Delivery Point(s))

ARTICLE III

TERM

(Continued)

3.2 Continuing Obligations - Following the termination of this Agreement, any remaining

Operational Imbalance shall be corrected in cash in accordance with Rate

Schedule LMS and Section 3 of these General Terms and Conditions of Company's FERC

Gas Tariff Volume No. 1, unless the parties mutually agree otherwise.

ARTICLE IV

DAILY DEMAND QUANTITY

Daily Demand Quantity - shall mean swing service entitlement elected by the Balancing Party

for use under Rate Schedule LMS at the Delivery Point(s) in Exhibit A hereto, on each day

during each month during the term hereof, which shall be _____ Dth per day.

ARTICLE V

MISCELLANEOUS

5.1 Warranties - Balancing Party warrants (i) that as to any gas which it delivers or

causes to be delivered to Company hereunder to correct an Operational Imbalance that

it will have good title to such gas, free and clear of all liens, encumbrances and

claims whatsoever; (ii) that it will at the time of delivery have the right to

deliver or cause to be delivered such gas; (iii) that it has the right to allocate

all deliveries from the Delivery Points in accordance with this Agreement, and

(iv) that it will indemnify and save Company harmless from suits, actions, debts,

accounts, damages, costs, losses and expenses arising from or out of adverse claims

of any or all persons to said gas or to royalties, overriding royalties, taxes, or

other charges thereon or with regard to the allocation of gas hereunder. Balancing

Party represents and warrants to Company that all requisite authorizations, if any,

have been obtained as to any gas which Balancing Party delivers or causes to be

delivered hereunder. The Balancing Party of each Delivery Point will take the

necessary corrective action requested by Company in accordance with this Agreement

and shall perform all acts and duties required to nominate, confirm and deliver gas

hereunder. If the Balancing Party fails to take such corrective action, then this

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

calendar month (then such Delivery Point(s) will be deleted from Exhibit A upon

written notice from Company at the end of the calendar month and shall no longer be

subject to this Agreement). Company may act, and shall be fully protected in

acting, in reliance upon any and all acts performed by Balancing Party to nominate,

confirm and deliver gas hereunder.

5.2 Governing Bodies - This Agreement shall be subject to all applicable laws, Federal

or State, and to all applicable rules and regulations of any duly authorized

Federal, State or other government agency having jurisdiction.

5.3 Waivers - No waiver by either party of any one or more defaults by the other in the

performance of this Agreement shall operate or be construed as a waiver of any

future default or defaults, whether of a like or of different character.

5.4 Billings and Payments - Company shall bill and Balancing Party shall pay for the

correction of Operational Imbalances in cash in accordance with Section(s) 5 and 6,

respectively, of the General Terms and Conditions specified in Company's FERC Gas

Tariff.

5.5 Incorporation of Tariff - Unless otherwise stated herein, Rate Schedule LMS and the

General Terms and Conditions specified in Company's FERC Gas Tariff are incorporated

as part of this Agreement.