TRANSPORTATION GENERAL TERMS AND CONDITIONS
                              (Continued)
   
nominations should provide allocation statements.  (Standards Board Standard
2.3.22).
   
         (d)  MIGC may enter into Operational Balancing Agreements (OBA) at
Points of Receipt and Delivery with the Interconnecting party. Such OBA provide
for the allocation of Confirmed Nominations to the Shipper's accounts with any
operational variances allocated to the OBA. Locations covered by an effective
OBA do not require an additional PDA.  Therefore, there is no need for shipper
to submit a PDA if MIGC has an OBA in effect a receipt or delivery point.
         Any new or proposed change to the methodology should be sent to MIGC
on or before the gas day on which the methodology is to be effective.  MIGC
shall confirm receipt of the methodology within 15 minutes if it is sent
during business hours by fax transmission or EDI.
   
     4.    Daily Receipt Variances - If, on a daily basis, receipts at MIGC
receipt points under a Transportation Service Agreement differ from Shipper's
daily nominations under such agreement by more than ten percent (10%) of such
daily nomination, Shipper shall pay MIGC, in addition to charges pursuant to
the rate provisions of the applicable MIGC Rate Schedule and any other
applicable charges under these Transportation General Terms and Conditions an
amount equal to the maximum ITS-1 rate times the total volume of any such
difference, and MIGC may suspend receipts or deliveries (as appropriate)
under such agreement pursuant to Section 15.3 or Section 4.11 until such time
as Shipper is in balance.  Provided, however that if a daily receipt variance
under an ITS-1 Transportation Service Agreement arises during a non-critical
period as a result of "bumping" (as defined herein), any penalty which would
be otherwise applicable to such variance will be waived.
         (a)   The penalty value determined in Section 4 above will be credited
to account 242, Miscellaneous Current and Accrued Liabilities, and maintained
for each Shipper.  At the close of each twelve (12) month period from the
effective date of this tariff sheet, MIGC will credit the amounts, if any,
recorded in any Shipper's account, net of any costs incurred, to the other
shippers not incurring a penalty described in Section 4 above during the same
twelve (12) month period.
   
    5.   Balancing - An imbalance results when a Shipper makes delivery (or
causes the delivery) to MIGC at the receipt point(s) under a Transportation
Service Agreement of a quantity of gas which, after appropriate reduction
for fuel and loss, is less than or greater than the quantity of gas taken
from MIGC at the delivery point(s) under such agreement.  Shipper shall
maintain thermal balancing of receipts and deliveries under each agreement on
a daily basis. Except with respect to periods during which actions by MIGC or
force majeure with respect to MIGC have caused imbalances or rendered Shipper
incapable of curing imbalances during applicable periods, the procedures
contained in this Section 5 hereof shall apply.  However, no imbalance penalty
shall be imposed when a prior adjustment applied to the current period causes
or increases a current month penalty.