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. 179 First Revised Sheet No. 179 : Effective

Superseding: Original Sheet No. 179

Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)

(b) The amounts due hereunder shall be paid in accordance with

Section 16 of the General Terms and Conditions of

Transporter's FERC Gas Tariff.

(c) (i) The Balancing Party (hereinafter referred to as the

"Party") and Transporter shall "cash out" the actual

monthly imbalance at the applicable market area price

described below.

For each Month, the monthly "Low Price" or "LP" for

the Market Area shall be established by taking the

lowest weekly Market Area Region Price ("MARP") set

forth in Tennessee's tariff pursuant to its Rate

Schedule LMS-MA established for the Market Area

applicable to the Month.

For each Month, the monthly "High Price" or "HP" for

the Market Area shall be established by taking the

highest weekly MARP established for the Market Area

applicable for the Month.

For each Month, the monthly "Average Price" or "AP"

for the Market Area shall be determined by taking the

simple arithmetic average of the weekly MARP figures

established for the Market Area applicable for the

Month.

In the event that these prices are no longer available

or valid, Transporter will file to change its tariff

and may, at its discretion, select a representative

price in the interim period, subject to refund. In

the event that a more representative posting is

established, Transporter will file to change its

tariff.

(ii) For all Parties whose % monthly imbalance is less than

or equal to 5% (as calculated according to Section 8.5

of this Rate Schedule) or whose monthly imbalance

(either actual or operational) is less than or equal

to 1,000 Dth, the following definitions shall apply to

the formula under which the Parties' actual imbalance

volumes are "cashed out":

- "Total Positive Imbalance" or "P" shall mean the

absolute value ("abv") of the sum of all actual

positive imbalances under Section 8.5(c)(ii) of

this Rate Schedule LMS-MA.

- "Total Negative Imbalance" or "N" shall mean the

abv of the sum of all actual negative imbalances

under Section 8.5(c)(ii) of this Rate Schedule

LMS-MA.

- "Net Pipeline Imbalance" or "I" shall mean the

difference between the Total Positive Imbalances

and the Total Negative Imbalances (I=P-N).

- Each of the imbalances (P, N, and I) shall be

calculated once, no later than the first billing

of cash outs after the close of the Month.