Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 27-005, Status: Effective

First Revised Sheet No. 226 First Revised Sheet No. 226 : Superseded

Superseding: ORIGINALS SHEET NO. 226

OPERATIONAL BALANCING AGREEMENT

(For Use at Points of Delivery)

This Agreement is effective _______________, _____ by and

between Alabama-Tennessee Natural Gas Company (Transporter), and

_______________ (OBA Party).

W I T N E S S E T H:

WHEREAS, Transporter transports and/or sells natural gas at

the Delivery Point(s) specified in Exhibit "A" attached hereto

("Delivery Point(s)") and OBA Party receives such gas at those

points from Transporter;

WHEREAS, the gas actually delivered at the Delivery Point(s)

is at times different than the quantities nominated to be

transported and delivered by Transporter at those points;

WHEREAS, Transporter and OBA Party desire to aggregate all

confirmed nominations and actual deliveries at all of the Delivery

Point(s) specified herein for the purpose of allocating any

difference between such confirmed nominations and actual deliveries

at the Delivery Point(s) (Operational Imbalance) to this Agreement;

WHEREAS, Transporter and OBA Party desire to correct the

Operational Imbalances in subsequent periods in cash, unless the

parties mutually agree otherwise; and

WHEREAS, Transporter and OBA Party desire to implement

operating rules designed to encourage conduct that maintains

Transporter's system balance in a manner that facilitates the

movement of gas for transportation purposes;

WHEREAS, OBA Party has elected a daily delivery quantity of

__________ Dth in accord with Section 1.2 of Rate Schedule LMS;

NOW, THEREFORE, for good and valuable consideration, the

receipt of which is hereby acknowledged, Transporter and OBA Party

covenant and agree as follows: