Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

Effective Date: 10/01/1997, Docket: GT97- 71-000, Status: Effective

First Revised Sheet No. 229 First Revised Sheet No. 229 : Effective

Superseding: ORIGINAL SHEET NO. 229

OPERATIONAL BALANCING AGREEMENT (continued)

(For Use at Points of Delivery)

Transporter for purposes of adjustments under this Section on

a daily basis during the month to determine the estimated

Operational Imbalance at all of the Delivery Point(s).

Transporter shall make the estimated Daily and Monthly

Operational Imbalance at each Delivery Point available to the

OBA Party no later than the second business day after each

day. Adjustments in nominations and actual deliveries will be

made by the OBA Party during the month so as to adequately

control imbalance levels. If the OBA Party fails to take such

corrective actions, Transporter in its sole discretion may,

upon 48 hours' notice, adjust the nominations and actual

deliveries during the remainder of the calendar month to

adequately control imbalance levels. Any such adjustments

shall be incorporated in the daily nominations confirmed

between Transporter and the OBA Party.

2.3 Corrections In Subsequent Periods - As soon as practicable

following the close of each month, Transporter will send the

OBA Party a statement setting forth the Operational Imbalance

existing at the end of the prior month. Any Monthly

Operational Imbalance shall be corrected in cash in accordance

with Section 3.7(d) of the General Terms and Conditions

specified in Transporter's FERC Gas Tariff, unless the parties

mutually agree otherwise.

2.4 Measurement of Operational Imbalance - Any gas received or

delivered pursuant to this Agreement to correct any

Operational Imbalance shall be adjusted for variation in Btu

content. Measurement of gas for all purposes shall be in

accordance with Transporter's FERC Gas Tariff.

2.5 Operational Integrity - Nothing in this Article II shall limit

Transporter's right to take action as may be required to

adjust deliveries of gas in order to alleviate conditions

which threaten the operational integrity of its system.