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. 195 First Revised Sheet No. 195 : Effective

Superseding: Original Sheet No. 195

Rate Schedule LMS-PA

Load Management (Pooling Area) Service (Continued)

(i) The Balancing Party or Shipper (hereinafter referred to as the "Party") and

Transporter shall "cash out" the actual monthly imbalance at the applicable

price described below.

(A) For each Month, the monthly "Low Price" or "LP" for each 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.

(B) For each Month, the monthly "High Price" or "HP" for each Market

Area shall be established by taking the highest weekly MARP

established for the Market Area applicable to the Month.

(C) For each Month, the monthly "Average Price" or "AP" for each Market

Area shall be determined by taking the simple arithmetic average of

the weekly MARP figures established for the Market Area applicable

to 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 7.1 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' 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

7.2(a) of this Rate Schedule LMS-PA.

- "Total Negative Imbalance" or "N" shall mean the abv of the sum of

all actual negative imbalances under Section 7.2(a) of this Rate

Schedule LMS-PA.

- "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.

The Parties' actual imbalance volumes shall be "cashed out"

according to the following formula:

(A) If I > or = zero then:

- Price for negative imbalances and imbalances less than or

equal to 1,000 Dth = AP

- Price for positive imbalances =

(abv(I) x LP) + (N x AP)

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P P