Sg Resources Mississippi, L.L.C

Original Volume No. 1

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

Original Sheet No. 246 Original Sheet No. 246 : Pending

FORM OF OPERATIONAL BALANCING AGREEMENT

(continued)

13. AS TO ALL MATTERS OF CONSTRUCTION AND

INTERPRETATION, THIS AGREEMENT SHALL BE INTERPRETED IN ACCORDANCE

WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ANY

CONFLICTS OF LAWS DOCTRINE WHICH WOULD APPLY THE LAWS OF ANOTHER

JURISDICTION.

14. UNLESS EXPRESSLY HEREIN PROVIDED, NEITHER PARTY

SHALL BE LIABLE TO THE OTHER FOR INDIRECT, SPECIAL, CONSEQUENTIAL,

INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES.

15. Any notice under this Agreement shall be in writing

and may be sent by facsimile transmission or mailed to the post

office address of the Party intended to receive the same, as

follows:

SGRM: ______________________________

______________________________

Attention:_____________________

PIPELINE: _______________________________

_______________________________

Attention:_____________________

or to such other address as either Party shall designate by formal

written notice to the other. In all instances, the Parties shall

use their best efforts to provide notice by facsimile prior to 5

p.m. Eastern Time. Notice received before 5 p.m. Eastern Time

shall be deemed effective the day of receipt. Notice received

after 5 p.m. Eastern Time shall be deemed effective the day

following receipt.

Payment by wire transfer shall be made to the following:

SGRM: ______________________________

______________________________

PIPELINE: _______________________________

_______________________________