Viking Gas Transmission Company

Original Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 52-001, Status: Effective

Original Sheet No. 122 Original Sheet No. 122 : Superseded

OPERATIONAL BALANCING AGREEMENT (Continued)

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 one

(1) year and shall continue thereafter on a month-to-month basis unless terminated by either

Party giving thirty days, written notice, with the termination to be effective at the end of

a calendar month. Notwithstanding the above, if any material problems arise 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.

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

Operational Imbalance shall be corrected in cash in accordance with Section _____ of Article

III of the General Terms and Conditions of Viking's FERC Gas Tariff unless the Parties

mutually agree otherwise.

ARTICLE IV

MISCELLANEOUS

4.1 Warranties - Operator warrants (i) that as to any gas which it delivers or causes to be

delivered to Viking 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 (of its) deliveries from the Receipt Points in

accordance with this Agreement; and (iv) that it will indemnify and save Viking 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. Operator

represents and warrants to Viking that all requisite authorizations, if any, have been

obtained as to any gas which Operator delivers or causes to be delivered hereunder. The

Operator of each Receipt Point will take the necessary corrective action requested by Viking

in accordance with this Agreement and shall perform all acts and duties required to nominate,

confirm and deliver gas hereunder. If the Operator fails to take such corrective action,

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

calendar month (then such Receipt Point(s) will be deleted from Exhibit A upon written notice

from Viking at the end of the calendar month and shall no longer be subject to this

Agreement). Viking may act, and shall be fully protected in acting, in reliance upon any and

all acts performed by Operator to nominate, confirm and deliver gas hereunder.