Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 244 Original Sheet No. 244 : Effective

OPERATIONAL BALANCING AGREEMENT (Cont’d)

2.4 The actual MMBtu at the Interconnection Point each month will be

determined and the actual Monthly Operational Imbalance communicated by the

allocating Party to the other Party in writing as soon as possible, but in no

case later than the fifteenth day of the month following the month in which

the actual Monthly Operational Imbalances arises. The Parties shall correct

any actual Monthly Operational Imbalance by the end of the month within which

the actual Monthly Operational Imbalance is determined, or within such longer

period of time as may be agreed to by the Parties. Deliveries of gas to

correct actual Monthly Operational Imbalances may be made between the parties

at the Interconnection Point set forth on Exhibit A, or at any other point of

interconnection between the respective facilities of the Parties as may be

mutually agreed to by the Parties.

2.5 Any gas volumes received and delivered to correct an Operational

Imbalance shall be adjusted for variations in Btu content in accordance with

the applicable provisions of the FERC Gas Tariff of the Party which received

the gas. Measurement of gas for all purposes hereunder shall be in

accordance with the provisions set forth in the measuring Party's then

effective FERC Gas Tariff.

2.6 In the event that a capacity constraint occurs on either Party's

system which results in curtailment of deliveries through an Interconnection

Point, the Party on whose system the constraint has occurred shall determine

the appropriate reallocation of quantities due to curtailment pursuant to the

provisions of Article I. If the constraint occurs at the Interconnection

Point, the Party which owns the meter at the Interconnection Point shall be

deemed to have the constraint on its system.

ARTICLE III

TERM

3.1 This Agreement shall be effective and the procedures set forth in

this Agreement shall be implemented as of the day and year first above

written, and shall continue in effect month-to-month thereafter; provided,

however that either Party may terminate this Agreement at any time by giving

forty-eight (48) hours prior written notice of termination to the other

Party, to be effective at the end of the month of such notification.