U-T Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective

Second Revised Sheet No. 112 Second Revised Sheet No. 112 : Superseded

Superseding: First Revised Sheet No. 112

U-T OFFSHORE SYSTEM

FORM OF OPERATIONAL BALANCING AGREEMENT

(Continued)

EXHIBIT 1

OPERATIONAL BALANCING AGREEMENT

BETWEEN U-T OFFSHORE SYSTEM

and _______________________

Dated ________________

Name of Interconnect Point: _____________________________________________________________

Effective dates of this statement (nomination period)

From: _________________ To: ________________

(Other Company)

UTOS Transportation Transportation Daily

Contract Customer Contract Customer Allocation

Number Name Number Name Dth/day

-------- -------------- ---------- ------------------- -------------

Operational Imbalance

Total Deliveries/Receipts at Interconnect Point

Agreed to this _____ day of _________________, _______.

U-T OFFSHORE SYSTEM __________________________________________________

By ______________________________ By _______________________________________________

______________________________ __________________________________________________