Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-C

Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective

Original Sheet No. 55 Original Sheet No. 55 : Superseded

Form of Operational Balancing Agreement - cont.

ARTICLE II

NOMINATIONS AND CONFIRMATIONS

Not later than one business day prior to the first day of each calendar

month in which service is to be provided, Transporter and the OBA Party shall

confirm the quantities nominated to be delivered and received each day at the

point(s) of interconnection on the first day of the month following the

confirmation. Any modification or adjustment to such confirmed quantities

must be confirmed by Transporter and the OBA Party prior to the commencement

of the revised service. Neither party shall be obligated to revise the

confirmed quantities in effect unless the other Party notifies it by 4:00 p.m.

CT, on the day prior to the day the change is to be made, unless the Parties

mutually agree otherwise. Transporter shall provide evidence of such

confirmations (in writing or by electronic means) within two business days

after such confirmation, unless the Parties mutually agree otherwise. If at

any time during a month the OBA Party fails to respond to Transporter's

request to confirm the quantities to be transported at the point(s) of

interconnection, then Transporter may, at its option, terminate this

Agreement at the end of the current calendar month upon prior written notice

to the OBA Party. If at any time during a month Transporter fails to respond

to the OBA Party's request to confirm the quantities to be transported at the

point(s) of interconnection, then Transporter may, at its option, terminate

this Agreement at the end of the current calendar month upon prior written

notice to Transporter.

The Parties intend that the quantity of gas actually delivered and

received each day at the point(s) of interconnection will equal the confirmed,

scheduled nominations of the Parties. Each Party will allocate the quantity

that is to be delivered and received at the point(s) of interconnection among

its Shippers pursuant to the confirmed, scheduled nominations. Any difference

between the actual physical flow of gas at the point(s) of interconnection

each day and the confirmed, scheduled, nominations of receipts and deliveries

for such day is the "Daily Operational Imbalance," which is the responsibility

of the Parties to eliminate pursuant to this Agreement.