Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective

Original Sheet No. 243 Original Sheet No. 243 : Effective

OPERATIONAL BALANCING AGREEMENT (Cont'd)

ARTICLE II

RECONCILIATION OF OPERATIONAL IMBALANCES

2.1 The Parties intend that the quantities of gas actually delivered

and received each day at the Interconnection Point will equal the confirmed

nominations, and the Party controlling the flow at the Interconnection Point,

as set forth on Exhibit A, shall control such flow accordingly. Each Party

shall allocate the volumes to be delivered and received at the

Interconnection Point among multiple Customers in accordance with the

confirmed nominations. Any difference between the aggregate quantity of gas

nominated and the aggregate quantity of gas actually delivered at the

Interconnection Point on any given day by each Party shall constitute the

Operational Imbalance for each Party for that day (Daily Operational

Imbalance).

2.2 During any given month, estimated meter quantities (dth) shall be

used by each Party on a daily basis to determine the estimated Daily

Operational Imbalance, if any, at the Interconnection Point for any given

day. The Parties shall promptly make such physical flow adjustments as may

be necessary in order to prevent, reduce or eliminate any Daily Operational

Imbalance. The daily variance in the estimated Daily Operational Imbalance

should not exceed five percent (5%) of the aggregate quantities nominated for

the day, nor two percent (2%) of the aggregate monthly quantities.

2.3 The sum of estimated Daily Operational Imbalances for each day in

a given month shall constitute the estimated Monthly Operational Imbalance

for such month. By the fifth day of the month following any given month in

which an estimated Monthly Operational Imbalance arises, the measuring Party,

as identified on Exhibit A, will notify the other Party as to the estimated

Monthly Operational Imbalance for the prior month, and the Parties shall

promptly make such physical flow modifications as may be necessary to reduce

or eliminate any such Monthly Operational Imbalance.