Here is my suggested mark up (in bold) of Greg's paragraph. I haven't sent
it to him yet. My tiering thing will follow shortly for your review. Dari,
please take a look and let me know if you have any heartburn about deleting
Par. 7. It is in the standard form OBA, but it is inconsistent with the new
letter agreement. DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 09/14/2000
10:06 AM ---------------------------

"Porter, Greg J" <GJPorter@midamerican.com< on 09/14/2000 08:03:36 AM
To: "'Drew.Fossum@enron.com'" <Drew.Fossum@enron.com<
cc:

Subject:

Drew, I will send the agreement over shortly. I wanted you to review the
following. I suggest inserting it as a new paragraph.

MidAmerican and NNG understand and agree that the original November 29, 1994
Cedar Rapids and Quad Cities Operational Balancing Agreements ("the OBA's")
provide for volumetric resolution of imbalances and were not intended to be
subject to the mandatory cash out provisions of NNG's Ferc Gas Tariff.
MidAmerican and NNG further understand and agree that the Agreements, as
clarified
herein, reflect the exclusive manner in which imbalances applicable to NNG
Station Nos.'s 54227 and 62858 will be incurred, valued and resolved.
MidAmerican and NNG acknowledge Northern has filed previously (e.g., Docket
No. RP00-404) and may file from time to time hereafter, to modify or
otherwise affect the manner in which imbalances are valued and resolved on
NNG's system. Unless otherwise mutually agreed by written amendments to the
Agreements, MidAmerican and NNG expressly agree that any such modifications
or changes, whether approved by FERC or not, shall not modify or affect the
manner in which imbalances applicable to MidAmerican's OBA's are incurred,
valued or resolved. Consistent with this agreement, MidAmerican and NNG
agree that Section 7 of the OBA's is hereby deleted in its entirety.
J. Gregory Porter
Senior Attorney
MidAmerican Energy Company
515-281-2641 (voice)
515-281-2355 (fax)