East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

Effective Date: 08/02/2010, Docket: RP10-946-000, Status: Effective

Fourth Revised Sheet No. 227 Fourth Revised Sheet No. 227

Superseding: Third Revised Sheet No. 227

RATE SCHEDULE PAL

PARK AND LOAN SERVICE

8. BALANCES

8.1 All PAL balance quantities reside at the PAL Point of Transaction at

which the original park or loan quantity was nominated, and must be

resolved at that PAL Point of Transaction by taking delivery of the

Park Balance or returning the Loan Balance to Transporter, as

applicable. Balances incurred under this Rate Schedule PAL shall be

resolved via in-kind balancing during the remaining term of the

transaction, which term is specified in Exhibit(s) A to the

Shipper's PAL Service Agreement. Shipper may resolve park and/or

loan balances by transporting such balances between PAL Points of

Transaction. The transportation shall be accomplished by Shipper's

submission of a nomination under Shipper's executed transportation

service agreement and the subsequent scheduling and Confirmation

processes pursuant to Section 4 of the General Terms and Conditions.

Shipper shall be required to reduce to zero each park and/or loan

quantity of gas at each PAL Point of Transaction no later than the

termination date of the Exhibit(s) A to the Shipper's PAL Service

Agreement, or prior to any mutually agreed upon extension of that

term, applicable to that quantity. Any balances remaining upon the

termination date of the Exhibit(s) A to the Shipper's PAL Service

Agreement, or any mutually agreed upon extension of that term, shall

be resolved in accordance with Sections 7.5 and 7.6, as applicable,

of this Rate Schedule PAL.

8.2 If Shipper's PAL account reflects a park balance at the termination

date of the associated Exhibit A to Shipper's PAL Service Agreement

or at the end of any mutually agreed upon extension of the

termination date, and the balance has not been resolved pursuant to

Section 7.5(c) of this Rate Schedule PAL, the term of the

transaction will be extended until the earlier of (i) such time as

the balance is reduced to zero or (ii) operating conditions require

the removal of the balance pursuant to Section 7.5(c) of this Rate

Schedule PAL. For any balance remaining beyond such agreed upon

period set forth for a PAL transaction in Exhibit A of Customer's

PAL Service Agreement, the applicable maximum rate(s) as set forth

on the effective Notice of Rates and Other Tariff Rate Changes shall

be applied on a daily basis until the balance is reduced to zero.

Any revenue received or cost incurred by Transporter as a result of the

operation of this Section 8 will be handled pursuant to Section 8.5(f)

of Rate Schedule LMS-MA for delivery points and Section 8 of Rate

Schedule LMS-PA for receipt points.