East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 10/29/2006, Docket: CP05-413-001, Status: Effective

First Revised Sheet No. 174 First Revised Sheet No. 174 : Effective

Superseding: Original Sheet No. 174

Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)

[A+B] - C = Balancing Party's MAD

where A = the sum of the MDDOs at all Primary Delivery Points for all firm

contracts covered by the Balancing Party's Balancing Agreements

(excluding any firm rights from Transporter's LNG facility at

Kingsport, Tennessee and/or from Primary Receipt Points on

Transporter's system at which Transporter does not have swing

capability)

B = any other quantities not included in A above scheduled by

Transporter at a point covered by the Balancing Party's Balancing

Agreement (including any firm quantities scheduled for delivery from

Transporter's LNG facility at Kingsport, Tennessee and/or from

Primary Receipt Points on Transporter's system at which Transporter

does not have swing capability, but excluding any firm quantities

scheduled at the interconnection between Transporter's mainline

system and any lateral for which service is provided pursuant to

Rate Schedules FT-L and/or IT-L)

C = quantities scheduled at Secondary Delivery Points under firm

contracts that name a point covered by the Balancing Party's

Balancing Agreement as a Primary Delivery Point (excluding any firm

rights from Transporter's LNG facility at Kingsport, Tennessee

and/or from Primary Receipt Points on Transporter's system at which

Transporter does not have swing capability)

Transporter shall post on LINK® the sum of the MDDOs at all Primary Delivery Points

for all firm contracts covered by each Balancing Party's Balancing Agreement

(excluding any firm rights from Transporter's LNG facility at Kingsport, Tennessee

and/or from Primary Receipt Points on Transporter's system at which Transporter

does not have swing capability and/or at the interconnection between Transporter's

mainline system and any lateral for which service is provided pursuant to Rate

Schedules FT-L and/or IT-L).

7.2 Balancing Party shall not be subject to MAD Service Charges under this Section 7

where Balancing Party is able to demonstrate that it is prevented from compliance

with this Section 7 due to an event excusing performance as defined in Section 24

of Transporter's General Terms and Conditions. Balancing Party shall notify

Transporter immediately if it believes that it is excused from compliance, and

shall provide Transporter with documentation sufficient to support its basis for

non-compliance.

7.3 In addition to the remedy set forth in Section 7.1 above, in the event a Balancing

Party takes gas in excess of the MAD, and Transporter believes it is necessary to

take actions (i.e., buying or selling gas, etc.) to maintain system integrity or to

prevent interrupting firm service, Transporter shall have the right, but not the

obligation, to take such remedial actions as it deems necessary. If Transporter

takes these actions, it shall be made whole by the Balancing Party that failed to

observe the MAD for all costs that Transporter incurs.