Egan Hub Storage, LLC

First Revised Volume No. 1

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Effective Date: 02/01/2009, Docket: RP09-160-000, Status: Effective

Original Sheet No. 164 Original Sheet No. 164







34.1 Any imbalances arising under any service agreement between

Customer and Egan Hub that are attributable to variances (1)

between actual receipts of Gas and scheduled and confirmed

receipts of Gas at Point(s) of Receipt, or (2) between actual

deliveries of Gas and scheduled and confirmed deliveries of Gas at

Point(s) of Delivery, which Point(s) of Receipt and/or Point(s) of

Delivery are subject to Operational Balancing Agreements, as more

fully described in Section 34.2, on the Gas Day or Gas Days such

variances arise, will be resolved by Egan Hub pursuant to the

terms of the applicable Operational Balancing Agreement.


34.2 For the purpose of minimizing operational conflicts between

various facilities with respect to the delivery of Gas to and from

Egan Hub's facilities, Egan Hub is willing to negotiate and

execute Operational Balancing Agreements with appropriate parties

that operate natural gas facilities which interconnect with Egan

Hub's facilities (herein called "OBA Party"). Such Operational

Balancing Agreements shall specify the gas custody transfer

procedures to be followed by Egan Hub and OBA Party for the

confirmation of scheduled quantities to be received by Egan Hub at

Point(s) of Receipt and delivered by Egan Hub at Point(s) of

Delivery. Such Operational Balancing Agreements will provide that

any variance between actual quantities and scheduled and confirmed

quantities for any Gas Day shall be resolved in-kind promptly. To

facilitate such determination of variances on a timely basis, Egan

Hub and OBA Party will agree in the Operational Balancing

Agreement on necessary measurement and accounting procedures.

Egan Hub will provide to any party upon request a copy of any

executed Operational Balancing Agreement.