East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 07/01/2004, Docket: RP04-362-000, Status: Effective

Original Sheet No. 328 Original Sheet No. 328 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(a) Issuance of Alerts: Action Alerts will be noticed in accord

with the procedures set forth in Section 14.4 and will be

issued in two stages. A minimum of 48 hours prior to the

time that a Shipper/Balancing Party must take the action

specified in the Alert, Transporter will issue a notice

informing the Shipper/Balancing Party of the known or

anticipated problem on the system, the action it will be

required to take, and the anticipated time at which it will

be required to take the action. Shipper/Balancing Party

will be expected to take preliminary actions to assist

Transporter in avoiding a system problem. A minimum of 30

hours prior to the time that the Shipper/Balancing Party is

required to take the designated action, Transporter will

issue specified action instructions. Conformance with these

instructions will be mandatory. Transporter, to the

greatest extent feasible, will issue the action instructions

such that the time of mandatory conformance will correspond

with the beginning of the Gas Day.

(b) Requested Actions: Upon issuance of an Action Alert,

Transporter can request that a Shipper/Balancing Party take

any of the following actions, or other similar actions, to

the extent that such actions would alleviate the situation:

(i) increase or decrease deliveries of gas into the system

at specified receipt points;

(ii) bring the nominations across all delivery points or,

if necessary, at specified delivery points within

designated balancing tolerances.

14.7 Balancing Alerts: In the event that, in Transporter's judgment,

the Action Alerts under Section 14.6 are not sufficient to address

the situation fully or under circumstances in which the

operational integrity of the system is more severely threatened,

Transporter may issue Balancing Alerts.

(a) Issuance of Alerts: Balancing Alerts will be noticed in

accord with the procedures set forth in Section 14.4 and

will be issued a minimum of eight hours prior to the

required action by the Shipper/Balancing Party.

(b) Required Actions: Balancing Alerts can be issued to effect

any of the following:

(i) curtailment of interruptible services;

(ii) restrictions of deliveries to a specific point or

points covered by a Balancing Agreement to the sum of

the Maximum Daily Delivery Obligations under the firm

transportation agreements with primary delivery points

at the affected locations; and/or