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

Fourth Revised Sheet No. 176 Fourth Revised Sheet No. 176 : Effective

Superseding: Third Revised Sheet No. 176

Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)

8.2 Resolution of Monthly Imbalances: During the Month, an LMS-MA

Balancing Party that has elected the Cash-out Option may use any

or all of Transporter's Imbalance Management Services, as

defined in Section 1 of the General Terms and Conditions, to

reduce or eliminate the monthly cash-out liability. An LMS-MA

Balancing Party may trade an imbalance with other LMS-MA or LMS-

PA Balancing Parties, in accordance with Section 8.4 below,

until the close of the seventeenth Business Day after the end of

the Month during which the imbalances occurred. Any

imbalance(s) not resolved via any of the Imbalance Management

Services will be resolved pursuant to Section 8.5 herein.

8.3 Imbalance Management Services: The Imbalance Management

Services offered by Transporter are identified in Section 1 of

the General Terms and Conditions. Details of each service are

included in the applicable Rate Schedule and Form of Service

Agreement contained in this tariff, or in Section 8.4 below.

8.4 Imbalance Trading: LMS-MA Balancing Parties electing the

Cashout Option will be allowed to trade imbalances occurring

during the Month with other LMS-MA or LMS-PA Balancing Parties.

Supply aggregators under Rate Schedule SA will be allowed to

trade imbalances occurring during the Month with other supply

aggregators within the same Pooling Area that are subject to

this Rate Schedule.

Transporter shall allow LMS-MA Balancing Parties to trade

imbalances with other LMS-MA or LMS-PA Balancing Parties within

the same Operational Impact Area, as defined in Section 1 of the

General Terms and Conditions, if the two Balancing Parties'

imbalances are offsetting balancing for the Month, such that the

net imbalance for each Balancing Party after the completion of

the trade would be reduced to a quantity closer to zero. A

Balancing Party may trade any imbalance with another Balancing

Party, provided that the trade shall not result in a

transportation path which crosses a Posted Point of Restriction,

as defined in Section 1 of the General Terms and Conditions, for

that Month.

When imbalances are traded, a Transportation Trade Component

shall be determined for each of the imbalances to be traded.

For each LMS-PA imbalance to be traded, the Transportation Trade

Component shall be deemed to be zero. For each LMS-MA imbalance

to be traded, the Transportation Trade Component shall be equal

to (1) Transporter's commodity rate under Rate Schedule FT-A,

FT-GS, or FT-L, as applicable, multiplied by the traded

quantity, plus (2) an additional amount to cover Transporter's

cost of gas for the system fuel and use and lost and unaccounted

for gas. The additional amount shall be calculated by

multiplying the amount of fuel necessary to transport the traded

quantity on Transporter's system by the Average Price as defined

in Section 8.5(c)(i) below.

For a Balancing Party with a due pipeline imbalance, Transporter

shall assess a charge equal to the calculated Transportation

Trade Component by including the charge in the Balancing Party's

invoice for the Month in which the trade was finalized. For a

Balancing Party with a due Shipper imbalance, Transporter shall

reflect a credit equal to the calculated Transportation Trade

Component on the Balancing Party's invoice for the Month in

which the trade was finalized.