Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 245 Original Sheet No. 245 : Effective

OPERATIONAL BALANCING AGREEMENT (Cont'd)

ARTICLE IV

OTHER AGREEMENTS

4.1 In the event that any provision of this Agreement conflicts with

any provision of the Parties' respective FERC Gas Tariffs or Service

Agreements, the applicable provision of the Parties' FERC Gas Tariffs or

Service Agreements shall take precedence over the conflicting provisions of

this Agreement; provided, however, that no balance, estimated or actual,

shall be subject to (i) a cash-in or cash-out, or (ii) an operational flow

order, unless specifically provided for in this Agreement.

ARTICLE V

NO THIRD PARTY BENEFICIARIES

5.1 This Agreement shall not create any rights in third parties, and

no provision of this Agreement shall be construed as creating any obligations

for the benefit of, or rights in favor of, any person or entity other than

the Parties.

ARTICLE VI

STANDARD OF PERFORMANCE

6.1 The Parties understand and agree that performance under this

Agreement shall occur only on a good faith basis. In the event of

nonperformance or noncompliance by either Party with respect to one or more

of the conditions set forth herein, such Party shall not be liable in any

manner to the other Party or to any third parties for such nonperformance or

noncompliance; except that, the Parties shall be legally obligated to

reconcile any outstanding actual operational balance under this Agreement and

which may exist upon termination of this Agreement consistent with the

relevant terms and conditions set forth in this Agreement.