Arkansas Western Pipeline Company

First Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-187-003, Status: Effective

First Revised Sheet No. 85 First Revised Sheet No. 85 : Superseded

Superseding: Original Sheet No. 85

FORM OF

OPERATIONAL BALANCING AGREEMENT

UNDER RATE SCHEDULE FTS OR ITS

This Agreement is entered into this ____ day of __________, 1993 by

and between ARKANSAS WESTERN PIPELINE COMPANY ("AWP"), an Arkansas

corporation, and ______________________________________.

WHEREAS, AWP and __________ have entered into a Facilities Agreement

dated _____________, ______;

WHEREAS, from time to time, the gas quantities delivered to or by AWP

or _________ at the Point of Interconnect which are either greater than or

lesser than the quantities nominated by shippers and confirmed by AWP or

__________, have resulted in inadvertent over or under deliveries relative to

the shippers' nominated quantities;

NOW, THEREFORE, AWP and __________, ("The Parties") agree that such

over or under deliveries at the Point of Interconnect shall be treated in the

following manner:

1. SCHEDULING AND CONTROL

Parties shall agree on who submits pre-determined allocation

("PDA") methodology, and who allocates at the point before gas

flows. PDA data elements should be standardized. Parties

shall inform AWP of such agreement. Prior to the first day of

each month and from time to time during the month, The Parties

shall reconcile and confirm the nominations received by each

from shippers for whom The Parties would deliver or receive gas

at the Point of Interconnect. Any changes to such confirmed

nominations shall be effective only if agreed to in writing by

both Parties. A summary of the total confirmed nominations

must be completed and signed by both Parties as soon as

practical after the flow month's end.

The Parties intend that the volume actually delivered and

received each day at the Point of Interconnect will equal the

confirmed nominations. Each Party will allocate the volumes

which are to be delivered and received at the Point of

Interconnect among the Party's respective shippers pursuant to

the confirmed nominations. Any difference between the actual

physical flow and the confirmed nominations is the "Operational

Imbalance," which will be the responsibility of The Parties to

eliminate pursuant to this Agreement. Estimated meter volumes

will be used daily to determine the estimated Operational

Imbalance at the Point of Interconnect. Physical flow

adjustments will be made during the current month as mutually

agreed by The Parties to adequately control imbalance levels.