East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 10/01/2007, Docket: RP00-469-013, Status: Effective

Fourth Revised Sheet No. 304 Fourth Revised Sheet No. 304 : Effective

Superseding: Third Revised Sheet No. 304

GENERAL TERMS AND CONDITIONS (Continued)

The term "Netting" shall mean the process of resolving imbalances

for a Service Requester within an Operational Impact Area. There

are two types of Netting:

(a) Summing is the accumulation of all imbalances above any

applicable tolerances for a Service Requester or agent.

(b) Offsetting is the combination of positive and negative

imbalances above any applicable tolerances for a Service

Requester or agent.

For Transporter, the definition in (a) above is applicable to the

Imbalance Netting provisions set forth in Section 8.5 of Rate

Schedule LMS-MA and Section 7.2 of Rate Schedule LMS-PA.

The term "Non-Segmentable OBA" shall mean an Operational Balancing

Agreement pursuant to Rate Schedule LMS-MA that is not a

Segmentable OBA.

The term "Operational Flow Order(s)" or "OFO" shall mean any

actions required of any Shipper or Shippers or Balancing Party, in

Transporter's sole opinion and in accordance with Section 14 of

Transporter's General Terms and Conditions, in order to ensure

deliveries of gas to all Shippers in accordance with their

Scheduled Quantities or as required to maintain system integrity.

The term "Operational Impact Area" shall mean a Transportation

Service Provider's designation of the largest possible area(s) on

its system in which imbalances have a similar operational effect.

For Transporter, the entire pipeline system will comprise a single

Operational Impact Area.

The term "Overlap Priority Percentage" shall mean the scheduling

priorities that Transporter is authorized to utilize in the event

that overlapping nominations submitted by the Releasing Shipper

and any Replacement Shipper are in excess of the MDTQ of the

Releasing Shipper's original contract.

The term "Pipeline Operational Section" shall mean the areas of

the pipeline in which Delivery Points can be grouped under a

Segmentable OBA and still be points that are segmentable pursuant

to Section 19.1 of these General Terms and Conditions. The

Pipeline Operational Sections are identified as follows:

i. From the discharge side of Station 3101 ("Ridgetop") to the

suction side of Station 3110 ("Wartburg")

ii. From the discharge side of Station 3201 ("Lobelville") to

the suction side of Station 3216 ("Calhoun")

iii. Line 3500 ("Murray Extension")

iv. From the discharge side of Station 3216 ("Calhoun") to the

suction side of Station 3110 ("Wartburg") and Station 3308

("Fordtown")

v. From the discharge side of Station 3308 ("Fordtown") to the

terminus of Transporter's mainline system at Roanoke

including Lines 3307B and 3307C

vi. Line 3400 ("Nora Lateral")

vii. Line 3600 ("Patriot Extension")

viii. Line 3700 ("Jewell Ridge")