Viking Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 127 Original Sheet No. 127 : Superseded

OPERATIONAL BALANCING AGREEMENT (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. Operator

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 Viking shall be

allocated each day based upon the confirmed nominations set forth in Section 1.1 above, or by

such other methods as may be mutually agreed to be both Parties.

1.3 Allocation of Variances - The difference on any 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 Viking under an Operational Flow Order (OFO), Operator

shall conform its takes to the terms and conditions of the OFO. If Operator fails to conform

its takes to the terms and conditions of an applicable OFO, then the excess quantities shall

be treated as unauthorized overruns under Rate Schedule LMS.

1.5 Reports on Actual Deliveries - Should Viking not have the ability to monitor actual

deliveries at any Delivery Point on a daily basis, Operator shall provide to Viking the best

available information compiled on a daily basis on the actual deliveries at such Delivery

Point(s) within two business days after the date of delivery. Nothing in the section will

require Operator to install metering devices where none currently exist.

ARTICLE II

CORRECTION OF OPERATIONAL IMBALANCES

2.1 Corrections in Flow Rates During A Day - Operator will be able to request adjustments to

actual deliveries at its Delivery Points at any time during the production day by

coordinating with Viking's gas dispatchers. Viking will use best efforts to deliver those

changed quantities when the operating conditions on Viking's system permit, taking into

consideration the nominations made by firm customers on Viking's system.