Exhibit 10.10

OPERATING AGREEMENT

This Agreement dated as of the 5th day of April, 1990, by and between GREAT
LAKES GAS TRANSMISSION LIMITED PARTNERSHIP, a Delaware limited partnership (the
“Partnership”), and GREAT LAKES GAS TRANSMISSION COMPANY, a Delaware corporation
(“GLGTC” or the “Operator”).

WITNESSETH:

WHEREAS, the Partnership was formed pursuant to a Limited Partnership Agreement
effective as of April 5, 1990 (“Partnership Agreement”); and the purpose of the
Partnership is to acquire, expand and operate an inter-state natural gas
pipeline, now beginning at a point on the international border near Emerson,
Manitoba and passing through the states of Minnesota, Wisconsin, and Michigan to
points on the international border near Sault Ste. Marie and St. Clair,
Michigan, to transport natural gas on behalf of various Shippers;

WHEREAS, GLGTC has owned and operated the facilities for over twenty years and
has the experience and the staff required to efficiently carry on the operation
of the Facilities after the transfer thereof to the Partnership;

WHEREAS, accordingly, pursuant to the Partnership Agreement, the Partnership has
designated GLGTC as

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Operator of the Facilities in accordance with and pursuant to the terms of this
Agreement; and

WHEREAS, Operator is willing and able to assume such responsibilities on the
terms and conditions set forth below;

NOW THEREFORE, in consideration of the representations, covenants and premises
hereinafter set forth, the Parties agree as follows:

1.             Definitions.

As used in this Agreement, the definitions used in the Partnership Agreement
shall, except as specifically provided herein, have the same meanings in this
Agreement. In addition, the following words and terms shall have the meanings
set forth herein:

1.1.          Accounting Procedure. The accounting procedure set forth in
Exhibit “A” hereto.

1.2.          Day. A period of twenty-four (24) consecutive hours commencing at
noon Eastern Standard Time.

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1.3.          Month. A period of time beginning on the first Day of a calendar
month and ending at the same time on the first Day of the next succeeding
calendar month.

1.4.          Year. Each twelve (12)-Month period beginning on the first Day of
a calendar year and ending at the beginning of the first Day of the next
calendar year; provided that the first year hereunder shall begin on the
formation date of the Partnership and shall end at the beginning of the first
Day of the following calendar year; and further provided that the last contract
year shall end at the termination of this Agreement as provided for in Section
9.1 of this Agreement.

1.5.          Party. Partnership or Operator, and “Parties” shall mean both
Partnership and Operator.

1.6.          Partnership. The Great Lakes Gas Transmission Limited Partnership
and any successor entities thereto.

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1.7.          Required Accounting Practice. The accounting rules and
regulations, if any, at the time prescribed by the regulatory body or bodies
under the jurisdiction of which the Partnership is at the time operating and, to
the extent of matters not covered by such rules and regulations, generally
accepted accounting principles as practiced in the United States at the time
prevailing for companies engaged in a business similar to that of the
Partnership.

2.             Relationship of the Parties.

2.1.          Appointment as Operator. Upon and subject to the terms and
conditions of this Agreement, the Partnership hereby appoints GLGTC as the
Operator of the Facilities and GLGTC hereby accepts such appointment and agrees
to act pursuant to the provisions hereof.

2.2.          Operator’s Authority to Execute Contracts. Subject to the
direction and prior approval of the Management Committee and subject to any
procedures established by the Management

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Committee, any contracts relating to Partnership business may be executed by the
Operator on behalf of the Partnership.

Copies of all contracts entered into by the Operator which affect the
Partnership or the Facilities shall be provided to the Partnership.

3.             Operator’s Design, Construction, Operation, Maintenance, and
Administration Responsibilities.

3.1.          Operator’s Responsibilities. Subject to the provisions of the
Partnership Agreement, and pursuant to the direction and supervision of the
Management Committee, and subject to its prior approval, the Operator shall have
the general responsibility for the design, construction, operation, maintenance,
and repair of the Facilities, including any Incremental Expansion, and the
administration of the business of the Partnership, as set forth herein:

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3.1.1.       The Operator shall provide the labor, materials, supplies and
supervision required for the operation and maintenance of the Facilities and
shall provide administrative, management, liaison, and related services to the
Partnership, including but not limited to accounting, administrative,
construction, engineering, marketing, planning, public relations, personnel,
purchasing, legal, treasury, repair, replacement, operational planning,
budgeting, technical services, insurance administration, tax services, and
regulatory matters.

3.1.2.       The Operator shall prepare, file and prosecute applications for
regulatory and governmental authority required by the Partnership, and make on
behalf of the Partnership periodic filings

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required of the Partnership by governmental or regulatory agencies having
jurisdiction.

3.1.3.       The Operator shall prepare financing plans for the Partnership (but
not for the individual Partners) and negotiate for financing commitments, if
any, to be entered into by the Partnership for the financing of the operation or
construction of any Facilities.

3.1.4.       The Operator shall maintain accurate accounting records in
accordance with the Required Accounting Practice for the design, planning,
construction, operation and maintenance of the Facilities, together with any
information requested by the Partnership relating to such records.

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3.1.5.       The Operator shall prepare proposed budgets and schedules for the
review and approval of the Partnership pursuant to Section 5.2 of this
Agreement.

3.1.6.       The Operator shall prepare financial statements as required and
when directed by the Management Committee.

3.1.7.       The Operator shall cause any proposed incremental Expansion to be
designed and constructed in accordance with the requirements of all federal,
state, or other governmental agencies having jurisdiction, including but not
limited to the requirements of the United States Department of Transportation
set forth in 49 CFR Part 192, and in accordance with sound and prudent natural
gas pipeline industry practices and provide or

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cause to be provided such appropriate supervisory, audit, administrative,
technical and other services as may be required.

3.1.8.       The Operator shall assist the Partnership in the preparation of tax
returns required of the Partnership and pay such taxes as are required and
approved to be paid by the Partnership.

3.1.9.       The Operator shall maintain custody of funds, notes, drafts,
acceptances, commercial paper and other securities belonging to the Partnership;
keep funds belonging to the Partnership on deposit in one or more banking
institutions selected by the Management Committee; and disburse such funds;
provided that the Partnership’s funds shall not be commingled with funds
belonging to the Operator.

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3.1.10.     The Operator shall negotiate service agreements with counsel,
Certified Public Accountants, and financial and other consultants.

3.1.11.     The Operator shall supervise, negotiate and administer contracts and
the Partnership’s service agreements and tariffs, including, but not limited to,
preparation and collection of all bills for services rendered thereunder and
payment of all bills for services received.

3.1.12.     The Operator shall make reports to and consult with the Management
Committee regarding all duties, responsibilities and actions of the Operator
under this Agreement in the form and at the times requested by the Management
Committee.

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3.1.13.     The Operator shall prepare and negotiate in the name of and on
behalf of the Partnership rights-of-way, land in fee, permits and contracts
necessary for planning, construction, operation and maintenance of the
Facilities; resist the perfection of any involuntary liens against Partnership
property and, to the extent permitted by law, hold Partnership property free of
all involuntary liens.

3.1.14.     The Operator shall make reports to . the Partnership of all
non-routine occurrences that the Operator determines may have a significant
adverse impact upon the operation of the Facilities.

3.1.15.     The Operator shall promptly make any and all repairs of a
non-routine nature to the Facilities

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as may be required, provided that repairs requiring unbudgeted expenditures in
excess of $500,000 shall not be made without the prior approval of the
Management Committee except in emergencies, in which case the Operator shall
promptly take all required remedial action and shall notify the Partnership as
soon as practicable of the nature of the emergency and the actions taken and to
be taken.

3.1.16.     Except as otherwise provided by applicable governmental regulations,
or as directed by the Management Committee, the Operator shall retain all
charts, records, books of account, Partnership Tax Returns, plans, designs,
studies and reports and other documents related to the design, construction,
operation and maintenance of the Facilities for a period of a

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least three (3) years from the date of completion of the activity to which such
records relate.

3.1.17.     The Operator shall perform such other duties as are requested by the
Management Committee or as are necessary or appropriate to discharge the
Operator’s responsibilities under this Agreement.

3.2.          Operator’s Right To Request Instructions From Management
Committee. The Operator may at any time, if it reasonably deems it to be
necessary or appropriate, request instructions from the Management Committee
with respect to any matter contemplated by this Agreement and may defer action
thereon pending the receipt of such instructions. The Operator shall be fully
protected in acting in accordance with the instructions of the Management
Committee or in omitting to act pending the receipt of such instructions, and
shall have no liability for any act in

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good faith in compliance therewith, or for its good faith failure to act pending
receipt thereof.

4.             Employees, Consultants and Subcontractors.

4.1.          Operator’s Employees, Consultants and Sub-contractors.

The Operator shall employ or retain and have supervision over the Persons
(including consultants and professional service or other organizations) required
by the Operator to perform its duties and responsibilities hereunder in an
efficient and economically prudent manner. The Operator shall pay all reasonable
expenses in connection therewith, including compensation, salaries, wages,
overhead, administrative expense, and fees incurred by Operator and its
Affiliates, and, if applicable, social security taxes, workers’ compensation
insurance, retirement and insurance benefits and other such expenses. The
compensation to be paid to and other employee benefits (including without
limitation retirement plans, life,

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health, accident and other insurance coverages and insurance programs) provided
to the Operator’s employees shall be determined by the Operator. All necessary
or appropriate expenses incurred by the Operator pursuant to this Section shall
be reimbursed to the Operator by the Partnership as provided in the Accounting
Procedure.

4.2.          Affiliates of Operator or Partners. The Operator shall be
authorized to utilize, as it deems necessary, the services of its corporate
Affiliates, provided that such services are utilized under contracts on terms
materially no less favorable to the Partnership than those prevailing at the
time for comparable services of unaffiliated independent parties.

4.3.          Standard for Operator and its Employees. The Operator shall
perform its services and carry out its responsibilities hereunder and shall
require all of its employees and contractors, subcontractors, and materialmen

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furnishing labor, material or services for the construction, operation and
maintenance of the Facilities to carry out their responsibilities, in accordance
with sound, workmanlike and prudent practices of the gas pipeline industry and
in compliance with all material laws, statutes, ordinances, safety codes,
regulations and rules of governmental authorities having jurisdiction.

4.4.          Equal Employment Opportunity. The Operator will not discriminate
against any employee or applicant for employment because of race, color,
religion, sex or national origin or because he or she is a disabled veteran or
veteran of the Vietnam era or because of physical or mental handicaps in regard
to any position for which he or she is qualified and will comply with the
provisions of 41 CFR §60-1.4(a)(l)-(7), 41 CFR §60-250.4(a)-(m) and 41 CFR
§60-741.4(a)-(f), all of which are incorporated herein by reference.

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5.             Financial and Accounting.

5.1.          Accounting and Compensation.

5.1.1.       The Operator shall keep a full and complete account of all costs,
expenses and expenditures incurred by it in connection with its obligations and
performance hereunder in the manner set forth in the Accounting Procedure.

5.1.2.       The Operator shall be reimbursed by the Partnership for all
necessary or appropriate costs, expenses and expenditures paid by it pursuant to
this Agreement and in connection with its duties and obligations hereunder in
the manner set forth in the Accounting Procedure.

5.2.          Budgets. Each December, the Operator shall submit for approval of
the Management Committee operating and capital budgets which the Operator
anticipates for the ensuing

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Year, including such supporting documentation and data as the Management
Committee may require. Except as the Management Committee may otherwise direct,
the budgets approved by the Partnership and then in effect shall constitute
authorization of the Operator to incur the expenditures contained in any such
budget and to incur expenditures of up to one million dollars in excess of the
amount set forth in any such budget. The Operator shall inform the Management
Committee of any facts that the Operator believes may increase any such budget
in excess of one million dollars.

5.3.          Disputed Charges. The Partnership may, within the time provided in
the Accounting Procedure, take written exception to any bill or statement
rendered by the Operator for any expenditure or any part thereof, on the ground
that the same was not a reasonable, authorized, and proper cost incurred by the
Operator in connection with the design, construction, operation, maintenance, or
administration of the Facilities or its

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other duties and responsibilities as Operator hereunder. The Partnership shall
nevertheless pay in full when due the amount of all statements submitted by the
Operator. Such payment shall not be deemed a waiver of the right of the
Partnership to recoup any contested portion of any bill or statement. However,
if the amount as to which such written exception is taken or any part thereof is
ultimately determined not to be a reasonable, authorized, and proper expense
incurred by the Operator hereunder, such amount or portion thereof (as the case
may be) shall be refunded by the Operator to the Partnership together with
interest thereon at a rate (which in no event shall be higher than the maximum
rate permitted by applicable law) equal to the rate designated by Citibank, N.A.
from time to time as its prime rate during the period from the date of payment
by the Partnership to the date of refund by the Operator.

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5.4.          Audit and Examination. Any Partner(s), the Partnership or their
designated representatives (including in the case of the Partnership
representatives from each Partner), after fifteen (15) Days’ notice in writing
to the Operator, shall have the right during normal business hours to audit or
examine, at the expense of the Person (Partner(s) or Partnership) conducting the
audit or examination, all books and records of the Operator as well as the
relevant books of account of the Operator’s contractors relating to the design,
construction, operation, maintenance, and repair of the Facilities and the
administrative services provided under this Agreement; provided, however, that
the total number of full audits commenced in any Year shall not exceed one. Such
right shall include the right to meet with the Operator’s internal and
independent auditors to discuss matters relevant to the audit or examination.
The Partnership shall have two (2) Years after the close of a Year in which to
make an audit of the Operator’s records

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for such Year; provided, however, that any audits relating to construction costs
may be made up to twenty-four (24) Months after the date of completion. Absent
fraud or intentional concealment or misrepresentation by the Operator or its
employees, and except for any adjustments which may arise from FERC compliance
audits, the Operator shall neither be required nor permitted to adjust any item
unless a claim therefor is presented or adjustment is initiated within two (2)
Years after the close of the Year in which the statement therefor is rendered,
and in the absence of such timely claims or adjustments, the bills and
statements rendered shall be conclusively established as correct; provided,
however, this shall not prevent adjustment resulting from physical inventory of
the Facilities and other Partnership property or audit adjustments relating to
construction costs incurred as set forth in this Section 5.4.

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6.             Agent.

6.1.          Agent. In performing services pursuant to this Agreement, the
Operator shall be an agent of the Partnership.

7.             Intellectual Property and Confidentiality.

7.1.          Inventions and Copyrights. Any: (i) inventions, whether patentable
or not, developed or invented, or (ii) copyrightable material developed by the
Operator or its employees while engaged exclusively in the performance of
services under this Agreement shall, unless otherwise directed, be assigned to
the Partnership, which shall have the exclusive right to the exploitation
thereof.

7.2.          Confidentiality. Because the information and knowledge gained
during the performance of services under this Agreement may consist of valuable
proprietary information, the misuse or disclosure of which could cause
substantial damage to the Partnership, any and all information obtained by the
Operator in performance of its obligations under this

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Agreement shall be held in strict confidence by the Operator, its employees or
agents except as needed to comply with the purposes of this Agreement. Where
appropriate, any contracts entered into by the Operator related to its
obligations under this Agreement shall contain a provision which similarly
restricts the use and disclosure of such information.

8.             Indemnification, Litigation, Insurance and Liability.

8.1.          Partnership’s Indemnity.

8.1.1.       The Partnership shall indemnify and save harmless the Operator and
its directors, officers, agents and employees against all litigation, actions,
claims, demands, debts and liabilities, and any costs including without
limitation reasonable legal fees and expenses incurred in connection therewith,
(to the extent only that such litigation, actions, claims, demands, debts and
liabilities are

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not satisfied by insurance carried pursuant to Section 8.2.1 below) arising out
of the acts (or failure to act) of the Operator, its directors, officers, agents
and employees in good faith and reasonably believed by the Operator, its
directors, officers, agents and employees to be within the scope of the
Operator’s authority under this Agreement, including actions, claims, demands,
costs and liabilities resulting from the negligence (but not the gross
negligence or willful misconduct) of the Operator, its directors, officers,
agents and employees, and the Operator, its directors, officers, agents, and
employees shall not be liable for any obligations, liabilities, or commitments
incurred by or on behalf of the Partnership as a result of any such acts (or
failure to act).

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8.1.2.       Any and all claims, damages or causes of action against the
Partnership in favor of anyone other than the Operator arising out of the
design, construction, operation, maintenance, and repair of the Facilities and
the administrative services provided under this Agreement that are not covered
by insurance as per Section 8.2 of this Agreement shall be settled or litigated
and defended by the operator in accordance with its best judgment and discretion
when (i) the amount involved is less than a ceiling amount to be established by
the Management Committee; (ii) no injunctive or similar relief is sought; and
(iii) no criminal sanction is sought; otherwise, such decision shall be made by
the Management Committee, and any settlement or defense

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thereof shall be controlled by the Management Committee.

8.2.          Insurance.

8.2.1.       The operator shall carry and maintain, as approved by the
Management Committee, insurance which it reasonably deems adequate to protect
the Operator, its directors, officers, agents and employees against all actions,
claims, demands, costs and liabilities arising out of the negligence of the
operator, its directors, officers, agents and employees in connection with the
duties and responsibilities of the operator hereunder. The Operator shall,
subject to the approval of the Management Committee, carry and maintain such
other insurance for the benefit of the Partnership and the Operator and require
contractors, subcontractors or consultants to carry and

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to maintain insurance, as directed by the management Committee, (i) to protect
the Partnership and the Operator and (ii) to satisfy any other requirement of
the law.

8.2.2.       Insurance maintained by the Operator pursuant to Section 8.2.1 of
this Agreement shall be a reimbursable cost pursuant to Section 5 of this
Agreement.

8.2.3.       The Operator may carry and maintain such other insurance for its
own account as it may deem necessary.

8.2.4.       With respect to claims and losses for damage, injury or destruction
of property that is a part of the Facilities, which property is covered by
insurance other than insurance provided for in Section 8.2.1 of this Agreement,
it is

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agreed that neither the Operator nor the Partnership or any of its Partners
shall have any rights of recovery against one another, nor against Affiliates of
either, nor the insurers of any of them, and their rights of recovery are
mutually waived. All such policies of insurance purchased to cover the
Facilities or any part thereof, or the operation (in any respect) of the
Facilities or any part thereof, or any gas transported or handled therein, shall
be endorsed properly to effectuate this waiver of recovery; provided, however,
that if the Partnership, any of the Partners, or the Operator is unable, despite
its best efforts, to obtain such an endorsement, then the other Parties may
waive or appropriately modify this requirement.

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8.3.          Limitation of Liability. Any claim of the Operator against the
Partnership which may arise hereunder shall be made only against the assets of
the Partnership, and all rights to proceed against the Partners and the assets
of the Partners, other than their interests in the Partnership, as a result of
any such claim or any obligation arising therefrom, are hereby expressly waived.
The operator shall endeavor to include a similar provision in all contracts
entered into by the Operator pursuant to this Agreement.

9.             Term.

9.1.          Term. This Agreement shall be effective as of April _, 1990 and
shall continue until the Partnership is dissolved in accordance with the
Partnership Agreement; provided that this Agreement may be terminated by the
Management Committee by giving 24-month’s prior written notice to the Operator.

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10.           Accounting and Taxes.

10.1.        Consistent with the Partnership Agreement. The accounting and tax
service provided by the Operator shall be consistent with the applicable
provisions of the Partnership Agreement. Matters of tax policy for the
Partnership shall be the responsibility of, and ultimately determined by, the
Management Committee in accordance with the Partnership Agreement.

11.           Law of the Contract.

11.1.        Law of the Contract. This Agreement shall be construed and
interpreted under the laws of the State of Delaware, without regard to the
principles of conflicts of laws.

12.           Force Majeure.

12.1.        Effect of Force Majeure. In the event that either the Partnership
or the operator is rendered unable, by reason of an event of force majeure, as
defined herein, to perform, wholly or in part, any obligation or commitment set
forth in this Agreement, then

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upon such Party’s giving notice and full particulars of such event as soon as
practicable after the occurrence thereof, the obligations of both Parties,
except for unpaid financial obligations arising prior to such event of force
majeure, shall be suspended to the extent and for the period of such force
majeure condition.

12.2.        Nature of Force Majeure. The term “force majeure” as employed in
this Agreement shall mean acts of God, strikes, lockouts or industrial disputes
or disturbances, civil disturbances, arrests and restraint of people,
interruptions by government or court orders, present and future valid orders,
decisions or rulings of any government or regulatory entity having proper
jurisdiction, acts of the public enemy, wars, riots, blockades, insurrections,
inability to secure labor or inability to secure materials, including inability
to secure materials by reason of allocations promulgated by authorized
governmental agencies, epidemics,

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landslides, lightning, earthquakes, fire, storms, floods, washouts, inclement
weather which necessitates extraordinary measures and expense to construct
facilities and/or maintain operations, explosions, breakage or accident to
machinery or lines of pipe, freezing of pipelines, inability to obtain or delays
in obtaining easements or rights-of-way, the making of repairs or alterations to
pipelines or plants, or any other cause, whether of the kind herein enumerated
or otherwise, not reasonably within the control of the Party claiming force
majeure.

12.3.        Resumption of Normal Performance. Should there be an event of force
majeure affecting performance hereunder, the Parties shall cooperate to take all
reasonable steps to remedy such event with all reasonable dispatch to insure
resumption of normal performance.

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12.4.        Strikes and Lockouts. Settlement of strikes and lockouts shall be
entirely within the discretion of the party affected, and the requirement in
Section 12.3 of this Agreement that any event of force majeure shall be remedied
with all reasonable dispatch shall not require the settlement of strikes or
lockouts by acceding to the demands of the parties directly or indirectly
involved in such strikes or lockouts when such course is inadvisable in the
discretion of the Party having such difficulty.

13. General.

13.1.        Effect of Agreement. This Agreement reflects the whole and entire
agreement among the Parties with respect to the subject matter hereof and
supersedes all prior agreements and understandings, oral and written, among the
Parties with respect to the subject matter hereof. This Agreement can be
amended, restated or supplemented only by the written agreement of the Operator
and the Partnership.

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13.2.        Notices. Any notice or other communication required or permitted
under this Agreement shall be in writing and shall be deemed to have been duly
given upon hand delivery or on the first business day following delivery to a
nationally recognized United States or Canadian overnight courier service, fee
prepaid, return receipt or other confirmation of delivery requested, or on the
third business day following delivery to the United States or Canadian Postal
Service as certified or registered mail, return receipt requested, postage
prepaid, if addressed to the Partnership and the Operator as set forth below, or
when telecopied or sent by facsimile transmission to the numbers designated in
writing by the Partnership and the Operator to be followed within three (3)
business days by delivery of such communications:

13.2.1.     If to the Operator, to: Secretary, Great Lakes Gas Transmission
Company, 2100 Buhl Building,

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Detroit, Michigan 48226, or such other person and/or address as may be
designated from time to time by written notice to the Partnership.

13.2.2.     If to the Partnership, to each of the Partners as set forth in the
Partnership Agreement or to such other Person and/or address as may be
designated from time to time by any Partner by written notice to the Operator.
Any Partner may request that additional copies of notices be given to an
Affiliate of such Partner at such address as is designated by such Partner by
written notice to the Operator; provided, however, that any failure to give such
notice shall not affect the validity of any notice given to any Partner or the
Partnership in accordance with this Section 13.2. The Operator agrees

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to give such notice to any such Affiliate.

13.3.        Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

13.4.        Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

13.5.        Waiver. No waiver by any Party of any default by any other Party in
the performance of any provision, condition or requirement herein shall be
deemed to be a waiver of, or in any manner release the other Party from,
performance of any other provision, condition or requirement herein, nor shall
such waiver be deemed to be a waiver of, or in any manner a release of, the
other Party from future performance of the same provision,

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condition or requirement. Any delay or omission of any Party to exercise any
right hereunder shall not impair the exercise of any such right, or any like
right, accruing to it thereafter. No waiver of a right created by this Agreement
by one Party shall constitute a waiver of such right by the other Party except
as may otherwise be required by law with respect to Persons not parties hereto.
The failure of one Party to perform its obligations hereunder shall not release
the other Party from the performance of such obligations.

13.6.        Assignability. This Agreement shall not be assigned by either the
Partnership or the operator, without the written consent of the other, which
consent shall not be unreasonably withheld by either Party. Any assignment
hereunder shall be effective on the first Day of the month following the month
during which the assignment is completed. This Agreement and all of the
obligations and rights herein established shall extend

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to and be binding upon and shall inure to the benefit of the respective
successors and assigns of the respective Parties hereto.

13.7.        References to Money. All references in this Agreement to, and
transactions hereunder in, money shall be to or in Dollars of the United States
of America.

13.8.        Severability. Should any provision of this Agreement be deemed in
contradiction with the laws of any jurisdiction in which it is to be performed
or unenforceable for any reason, such provision shall be deemed null and void,
but this Agreement shall remain in force in all other respects. Should any
provision of this Agreement be or become ineffective because of changes in
applicable laws or interpretations thereof or should this Agreement fail to
include a provision that is required as a matter of law, the validity of the
other provisions of this Agreement shall not be affected thereby. If such
circumstances arise, the Parties hereto

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shall negotiate in good faith appropriate modifications to this Agreement to
reflect those changes that are required by law.

13.9.        Third Persons. Except as contemplated herein, nothing herein
expressed or implied is intended or shall be construed to confer upon or to give
any Person not a Party hereto any rights or remedies under or by reason of this
Agreement.

13.10.      Laws and Regulatory Bodies. This Agreement and the obligations of
the Parties hereunder are subject to all applicable laws, rules, orders and
regulations of governmental authorities having jurisdiction and, in the event of
conflict, such laws, rules, orders and regulations of governmental authorities
having jurisdiction shall control.

13.11.      Remedies Cumulative. Remedies provided under the provisions of this
Agreement shall be cumulative and shall be in addition to the remedies provided
by law or in equity.

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13.12.      Approval of Partnership. Unless otherwise specified, when the
approval or other action of the Partnership is required under this Agreement
such requirement shall be deemed to require approval of the Management
Committee.

13.13.      Operator’s Office. Operator may select the location of its office or
offices to perform its obligations hereunder.

13.14.      Section Numbers. Unless otherwise indicated, references to Section
numbers are to Sections of this Agreement.

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their duly authorized representatives as of this 5th day of April, 1990.

 

OPERATOR

 

GREAT LAKES GAS TRANSMISSION COMPANY

 

 

 

/s/ John K. Archambault

 

 

By: John K. Archambault.- its president

 

          and Chief Executive Officer

 

 

 

 

 

GREAT LAKES GAS TRANSMISSION
LIMITED PARTNERSHIP

 

 

 

TRANSCANADA GL, INC.,
GENERAL PARTNER

 

 

 

By:

/s/ Mitchell T. G. Graye

 

 

 

 

Its:

Vice President

 

 

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EXHIBIT A
TO
OPERATING AGREEMENT
ACCOUNTING PROCEDURE

ARTICLE I

General Provisions

1.01 Statements and Billings. The Operator shall bill the Partnership on the
first day of each month or as soon as possible thereafter for the estimated
costs and expenses for the month and any adjustment which may be necessary to
correct prior estimated billings to actual. Such bills will be summarized by
appropriate classifications indicative of the nature thereof.

1.02 Payment by Partnership. The Partnership shall pay all bills presented as
provided in the Operating Agreement on or before the 15th day after the billing
date. If payment is not made within such time, the unpaid balance shall bear
interest until paid at a rate (which in no event shall be higher than the
maximum rate or rates permitted by applicable law) equal to the rate designated
by Citibank, N.A. from time to time as its prime rate; provided, however, that
if employees of the Operator are responsible for writing the

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Partnership’s checks and the Partnership has sufficient funds to make payment,
no interest charge shall be imposed for late payment. Payment by or on behalf of
the Partnership shall not be deemed a waiver of the right to recoup any amount
in question.

1.03 Adjustments. Payment of any bills shall not prejudice the right of the
Partnership to protest or question the correctness thereof; provided, however,
that, absent fraud or intentional concealment or misrepresentation by the
Operator or its employees, all bills and statements rendered to the Partnership
by the operator during any calendar year shall conclusively be presumed to be
true and correct after 24 months following the end of any such calendar year,
unless prior to the end of said 24-month period the Partnership takes written
exception thereto and makes claim on the Operator for adjustment; provided,
however, this shall not prevent adjustment resulting from FERC Compliance Audits
or the physical inventory of the Facilities and other Partnership property, and
any adjustments relating to construction costs may be made up to 24 months after
the date of completion. No adjustment favorable to the

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Operator shall be made unless it is made within the same prescribed period.

1.04 Financial Records. The Operator shall maintain accurate books and records
in accordance with the Required Accounting Practice covering all of the
Operator’s actions under this Operating Agreement.

ARTICLE II

Capital Items

Except for items included in a previously approved budget, prior to the
acquisition of any property, real or personal, costing more than a ceiling
amount to be established by the Management Committee in the name or on behalf of
the Partnership which under the accounting rules and regulations, if any, at the
time prescribed by the regulatory body or bodies under the jurisdiction of which
the Partnership is at the time operating, might be capitalized, the operator
shall prepare and submit to the Partnership a forecast of the cost of all such
property. Upon approval of such forecast by the Partnership (including approval
of the proposed purchase), the Operator shall have authority to purchase such
property in the Partnership’s name without further approval or action by the
Partnership. To the extent the Operator owns property necessary or desirable

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for the operation and maintenance of the Facilities that: (i) under the
accounting rules and regulations, if any, prescribed by the regulatory body or
bodies under the jurisdiction of which the Partnership is at the time operating,
might be capitalized, (ii) the Operator in its sole discretion is willing to
transfer for consideration to the Partnership, and (iii) can be transferred by
the Operator to the Partnership free and clear of all prior liens and
encumbrances, the Operator, if approved by the management Committee, may so
transfer such property to the Partnership and charge the Partnership the net
book value thereof as reflected on the books of the Operator on the date of
transfer.

ARTICLE III

Costs, Expenses and Expenditures

Subject to the limitations hereinafter prescribed and the provisions of the
Operating Agreement to which this Accounting Procedure is an exhibit, the
Operator shall charge the Partnership for all necessary or appropriate costs and
expenses incurred by the Operator in connection with the planning, design,
construction, engineering, operation, maintenance, or repair of the Facilities,
including any Incremental Expansion, and the administration of the services

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provided for under the Operating Agreement, (hereinafter collectively referred
to as “Operation of the Facilities”), including but not limited to the following
items:

3.01 Rentals. All rentals paid by the Operator.

3.02 Labor, Administrative and General Costs.

(a)             Salaries and wages of employees of the operator directly engaged
in connection with the Operation of the Facilities; amounts paid as salaries and
wages of others temporarily employed in connection with the operation of the
Facilities; and salaries and wages of the Operator’s personnel who render
services with respect to the Operation of the Facilities including, but not
limited to, accounting, administrative, construction, engineering, marketing,
planning, public relations, personnel, purchasing, legal, treasury, repair,
replacement, operational planning, budgeting, technical services, insurance
administration, tax services and regulatory matters. Such salaries and wages
shall be loaded to include the Operator’s actual cost of holiday, vacation,
sickness and jury service benefits and other customary allowances for time not
worked paid to persons

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whose salaries and wages are chargeable under this subsection 3.02(a).

(b)             Expenditures or contributions made pursuant to assessments
imposed by governmental authority which are applicable to salaries, wages and
costs chargeable under Subsection 3.02(a) above, including but not limited to
FICA taxes and federal and state unemployment taxes.

(c)             Expenditures made by the Operator for the cost of plans for
employers, group life insurance, hospitalization, disability, pension,
retirement, savings and any other benefit plans, which are applicable to the
personnel whose salaries and wages are chargeable under subsection 3.02(a)
above.

3.03 Reimbursable Expenses of Employees. Reasonable personal expenses of
employees whose salaries and wages are chargeable under Section 3.02(a) hereof.
As used herein, the term “personal expenses” shall mean the usual out-of-pocket
expenditures incurred by employees in the performance of their duties and for
which such employees are reimbursed. The Operator shall maintain documentation
for such expenses in accordance with the standards of the Internal Revenue
Service.

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3.04 Material, Equipment and Supplies. It is contemplated that all material,
equipment and supplies will be owned by the Partnership and purchased or
furnished for its account. So far as is reasonably practical and consistent with
efficient and economical operation, only such material shall be obtained for the
Facilities as may be required for immediate use, and the accumulation of surplus
stock shall be avoided. To the extent reasonably possible, the Operator shall
take advantage of discounts available by early payments and pass such benefits
on to the Partnership. Material, equipment and supplies furnished by the
Operator, if any, shall be priced at cost plus the operator’s actual carrying
costs as approved by the Management Committee in its most recent budget.

3.05 Transportation. Transportation of employees, equipment and material and
supplies necessary for the operation of the Facilities. It is anticipated that
transportation equipment used by the Operator will be owned by the Partnership;
provided, however, any automobiles, airplanes and trucks owned or obtained by
the Operator from the Operator’s Affiliates or through contracts with others and
approved for use for the operation of the Facilities will be billed to the

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Partnership at reasonable rates based on the Operator’s actual costs.

3.06 Services.

(a)             The cost of contract services and utilities procured from
outside sources.

(b)             Use and services of vehicles, equipment and facilities furnished
by the Operator as provided in Section 3.05 hereof.

3.07 Legal Expenses and Claims. All costs and expenses of handling,
investigating and settling litigation or claims arising by reason of the
Operation of the Facilities or necessary to protect or recover any Facilities’
property, including, but not limited to, attorney’s fees, court costs, costs of
investigation or procuring evidence and any judgments paid or amounts paid in
settlement or satisfaction of any such litigation or claims. The Operator shall
credit the Partnership for judgments received or amounts received in settlement
of litigation, with respect to any claim asserted on behalf of the Partnership.

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3.08 Taxes. All taxes (except those measured by income) of every kind and nature
assessed or levied upon or incurred in connection with the Operation of the
Facilities or on the Facilities or other property of the Partnership and which
taxes have been paid by the operator for the benefit of the Partnership,
including charges for late payment arising from extensions of the time for
filing which is caused by the Partnership, or which results from the operator’s
good faith efforts to contest the amount or application of any tax.

3.09 Insurance. Net of any returns, refunds, or dividends, all premiums paid and
expenses incurred for insurance required to be carried under the operating
Agreement for the benefit of the Operator and/or Partnership.

3.10 Permits, Licenses and Bond. Cost of permits, licenses and bond premiums
necessary in the performance of the Operator’s duties.

3.11 Filing Fees. All regulatory filing fees (if any) paid by the Operator
related to application(s) for authority to construct and operate the Facilities,
including any Incremental Expansions.

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