East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective

First Revised Sheet No. 168 First Revised Sheet No. 168 : Effective

Superseding: Substitute Original Sheet No. 168

IT-L RATE SCHEDULE

INTERRUPTIBLE LATERAL TRANSPORTATION SERVICE

4. RATES AND CHARGES (continued)

4.3 Incidental Charges: In addition to the charges pursuant to

Section 4.1 and 4.2 of this Rate Schedule, Transporter shall

charge Shipper an amount to reimburse Transporter 100% for any

filing or similar fees and, if applicable, sales or use tax that

have not been previously paid by Shipper, that Transporter incurs

in establishing or rendering service. Transporter shall not use

the amounts of incidental charges so collected as either costs or

revenues in establishing its general system rates. The applicable

incidental charges shall be reflected on the IT-L Agreement.

4.4 Crediting of Revenues: For each annual period ending October 31

of each year, or partial annual period ending October 31 for the

initial period hereunder, subsequent to Transporter's recovery of

all transmission costs allocated to this service under this Rate

Schedule, 100% of all net revenues received by Transporter under

this Rate Schedule shall be subject to being credited to all firm

and interruptible Shippers under Transporter's Rate Schedules FT-L

and IT-L. Credit amounts shall be allocated to each Shipper based

on each Shipper's contribution to fixed costs during the year

under its service agreement. For the purpose of this section,

"net revenues" shall mean all revenues received by Transporter for

interruptible transportation service, less variable costs and

applicable surcharges. Transporter and a negotiated rate Shipper

may agree upon a sharing of such allocated credits. Any credits

due hereunder shall be made within 90 days following each

anniversary of the Implementation Date and shall include interest

at the Commission approved rate.

4.5 Negotiated Rates: Notwithstanding any provision of Transporter's

effective FERC Gas Tariff to the contrary, Transporter and Shipper

may mutually agree in writing to rates, rate components, charges

or credits for service under this Rate Schedule that differ from

those rates, rate components, charges or credits that are

otherwise prescribed, required, established or imposed by this

Rate Schedule or by any other applicable provision of

Transporter's effective FERC Gas Tariff. If Transporter agrees to

such differing rates, rate components, charges or credits

("Negotiated Rates"), then the Negotiated Rate(s) shall be

effective only for the period agreed upon by Transporter. During

such period, the Negotiated Rate shall govern and apply to

Shipper's service and the otherwise applicable rate, rate

component, charge or credit, which the parties have agreed to

replace with the Negotiated Rate, shall not apply to, or be

available to, Shipper. At the end of such period, the otherwise

applicable maximum rates or charges shall govern the service

provided to Shipper. Only those rates, rate components, charges

or credits identified by Transporter and Shipper in writing as

being superseded by a Negotiated Rate shall be ineffective during

the period that the Negotiated Rate is effective; all other rates,

rate components, charges or credits prescribed, required,

established or imposed by this Rate Schedule or Transporter's FERC

Gas Tariff shall remain in effect. Transporter shall make any

filings with the Commission necessary to effectuate a Negotiated

Rate.