East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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

Second Revised Sheet No. 194 Second Revised Sheet No. 194 : Effective

Superseding: First Revised Sheet No. 194

Rate Schedule LMS-PA

Load Management (Pooling Area) Service (Continued)

7. MONTHLY IMBALANCES

7.1 The LMS-PA Balancing Party's monthly imbalance shall be the net

total of daily variances from all points covered by the LMS-PA

Balancing Party's OBA(s) adjusted for make-up quantities and

imbalance trading transactions, with the exception that monthly

imbalances created on that portion of Transporter's system not

designated as an Incremental Lateral shall not be netted against

monthly imbalances created on that portion of Transporter's system

designated as an Incremental Lateral. Unless Transporter and the

Balancing Party mutually agree to correct the imbalance in kind on

a nondiscriminatory basis, each Month Transporter and the

Balancing Party shall "cash out" any imbalance between Scheduled

Quantities and actual receipts. To determine the % monthly

imbalance, Transporter shall divide the lesser of the monthly

imbalance based on Operational Data or the actual monthly

imbalance by the total Scheduled Quantities for all Days of the

Month for all points covered by the Balancing Agreement, then

multiply by 100.

7.2 (a) If the monthly imbalance is due to an excess of actual

receipts relative to Scheduled Quantities, then the monthly

imbalance shall be considered a "positive" imbalance and

Balancing Party/Shipper shall sell to Transporter, and

Transporter shall buy from the Balancing Party/Shipper, in

accordance with the formula listed in Section 7.2(a) of this

Rate Schedule. If the monthly imbalance is due to a

deficiency in actual receipts relative to Scheduled

Quantities, then the monthly imbalance shall be considered a

"negative" imbalance and Transporter shall sell to the

Balancing Party/Shipper, and Balancing Party/Shipper shall

buy from Transporter, in accordance with the formula listed

in Section 7.2(a)(ii).

The amounts due hereunder shall be paid in accordance with

Section 16 of the General Terms and Conditions of

Transporter's FERC Gas Tariff.