Sg Resources Mississippi, L.L.C

Original Volume No. 1

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Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 243 Original Sheet No. 243 : Pending

FORM OF OPERATIONAL BALANCING AGREEMENT

(continued)

month, the difference between the physical flow and the scheduled

quantities at the Location each month will be determined and

communicated by the Measuring Party to the other Party in writing

as an "Operational Imbalance Statement" in such form as may be

mutually agreeable to the Parties, as soon as possible, but in no

case later than the tenth (10th) business day of the month

following the month in question or such other date as may be

mandated by NAESB from time to time. Physical flows shall be

determined pursuant to the applicable provisions of Measuring

Party's then effective FERC Gas Tariff; provided, however, the

Parties may agree to standards more stringent than the Measuring

Party's then effective FERC Gas Tariff. Any Operational Imbalance

for any calendar month shall be agreed to in writing within twenty

(20) calendar days of the end of such month in any format mutually

agreeable to the Parties. The Operational Imbalance shall be

corrected on an in-kind basis within thirty (30) days of the month

in which the imbalance occurred, unless the Parties mutually agree

in writing to carry the imbalance forward or to resolve the

imbalance by "cash out" valued at the Reference Spot Price in

accordance with Section 5 below, provided, however, that

Operational Imbalances of 10,000 Dth or less at the end of any

month shall be carried forward into the next month.

(d) If either Party discovers any errors in the

metered volumes of gas delivered and received at the Location, the

errors shall be corrected in the current calendar month by adding

to the monthly pipeline imbalance statement an adjustment

reflecting a correction of metering errors. The adjustment in

volumes resulting from metering errors shall be cashed out as

provided for in Section 5 below at the price for the month in

which the error occurred, unless otherwise mutually agreed. No

adjustments of meter volumes shall be made after six months

following the month in which they were measured unless there is a

deliberate omission or misrepresentation or mutual mistake of fact

or the Parties otherwise mutually agree. Out of period

corrections shall be made to the month of flow for allocation and

billing purposes. If either Party disputes the adjustment it will

have three months after the adjustment is made to challenge in

writing and rebut the adjustment.

5. In the event the Parties agree to "cash out" rather than

pay back "in-kind" for a particular month, the Party that owes

under the Imbalance Statement shall pay the other Party for such

Operational Imbalance at the Reference Spot Price, as defined

below, in accordance with the following provisions of this Section