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   &lt;div align="justify" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;5.&lt;/b&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;b&gt;Gas in Storage&lt;/b&gt;
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;Gas Distribution Operations price natural gas storage injections at the average of the costs of
   natural gas supply purchased during the year. For interim periods, the difference between current
   projected replacement cost and the LIFO cost for quantities of gas
   temporarily withdrawn from storage is recorded as a temporary LIFO liquidation credit or debit
   within the Condensed Consolidated Balance Sheets (unaudited). Due to seasonality requirements,
   NiSource expects interim variances in LIFO layers to be replenished by year-end. Changes between
   the temporary LIFO liquidation credits in the amounts of $6.4&amp;#160;million and $8.3&amp;#160;million during the
   first six months of 2010 and 2009, respectively, are considered non-cash activities for the
   Condensed Statements of Consolidated Cash Flows (unaudited). In addition to the temporary LIFO
   liquidation credit described above, NiSource also has a temporary LIFO liquidation debit of $15.6
   million recorded for the first six months of 2010 for certain gas distribution companies recorded
   within, &amp;#8220;Prepayments and other,&amp;#8221; on the Condensed Consolidated Balance Sheets (unaudited).
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      <ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
 -Publisher AICPA
 -Name Accounting Research Bulletin (ARB)
 -Number 43
 -Chapter 3
 -Section A
 -Paragraph 9

Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Regulation S-X (SX)
 -Number 210
 -Section 02
 -Paragraph 6
 -Subparagraph a, b, c
 -Article 5

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