Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 09/01/1993, Docket: RS92- 27-003, Status: Effective

Original Sheet No. 228 Original Sheet No. 228 : Superseded

OPERATIONAL BALANCING AGREEMENT (continued)

(For Use at Points of Delivery)

1.4 Limitation on Takes - Upon Notice by Transporter, the OBA

Party shall not be entitled to take deliveries in excess of

the greater of (a) confirmed nominations, or (b) the aggregate

of the maximum daily quantities set forth in the firm

transportation contract(s) for all parties delivering gas at

the Delivery Point(s). If, despite this notice by

Transporter, the OBA Party takes deliveries in excess of that

amount, then the excess quantities will not be allocated to

this Agreement as an Operational Imbalance but shall be

treated as deliveries under Operator's firm transportation

rate schedule, subject to any unauthorized over-run penalties

set forth therein.

1.5 Reports on Actual Deliveries - In the event that Transporter

does not have the ability to monitor actual deliveries at any

Delivery Point(s) on a daily basis, the OBA Party shall

provide to Transporter the best available information compiled

on a daily basis on the actual deliveries at such Delivery

Point(s) within two business days after the date of delivery.

Nothing in this section will require an OBA Party to install

metering devices where none currently exist.

ARTICLE II

CORRECTION OF OPERATIONAL IMBALANCES

2.1 Corrections in Flow Rates During A Day - The OBA Party will be

able to request adjustments to actual deliveries at its

Delivery Points at any time during the day in accordance with

the scheduling provisions in Section 3 of Transporter's FERC

Gas Tariff. Transporter will use reasonable efforts to

deliver those changed quantities when the operating conditions

of Transporter's system permits, taking into consideration,

among other things, the nominations made by other customers on

Transporter's system.

2.2 Corrections During the Month - Estimated metered quantities,

or actual metered quantities where available, may be used by