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

Fourth Revised Sheet No. 335 Fourth Revised Sheet No. 335 : Effective

Superseding: Third Revised Sheet No. 335

GENERAL TERMS AND CONDITIONS (Continued)

(v) Among interruptible services, according to the IT or IT-L

rate, as applicable, paid by Shippers each Month, with IT or

IT-L Shippers, as applicable, at higher rates being

scheduled ahead of IT or IT-L Shippers, as applicable, at

lower rates. The foregoing notwithstanding, if an IT or IT-

L Shipper was flowing gas under its IT or IT-L Agreement, as

applicable, during the previous Month, such Shipper will be

notified if its current IT or IT-L nomination can not be

scheduled due to price, and given an opportunity to offer a

price that will enable its IT or IT-L nomination to be

scheduled. IT or IT-L Shippers paying the same rate shall

be scheduled pro rata based on Scheduled Quantities. For

the purpose of this Subsection (v), any Shipper paying a

rate above the maximum rate, shall be deemed to be paying

the maximum applicable rate.

(vi) Among PAL Shippers based on net present value, with the

transaction yielding the highest net present value receiving

priority over transactions yielding a lower net present

value. Net present value shall be calculated on the basis

of the present value of the daily PAL charge per Dth to

Transporter. PAL transactions yielding the same net present

value shall be scheduled pro rata based on Scheduled

Quantities. In making the determination of net present

value, Transporter shall apply the rate, as of the date of

the review, stated in accordance with the most recent 5-year

United States Government Treasury Note, to all bids.

For the purposes of determining whether points are located within

the Contract Path, Transporter shall consider a movement of gas

from a Receipt Point to a Delivery Point which is counter to the

gas flow contemplated by the Primary Receipt Point(s) and Primary

Delivery Point(s) specified in the service agreement as being

outside of the Shipper's Contract Path. In addition, for any

movement of gas that traverses a segment(s) in which the total

nominated quantity for that contract exceeds the firm contractual

entitlement, the nominated quantity in excess of the firm

contractual entitlement shall be deemed to be outside of the

Shipper's Contract Path for that portion of the nominated

quantity that exceeds the firm contractual commitment.

(b) Throughput Scheduling Priority: Transporter shall schedule gas

transported on Transporter's system in the following sequence

and/or in accordance with the supply/market rankings provided in a

Shipper's nomination:

(i) First among FT-A, FT-L, and FT-GS Shippers for gas received

within a Shipper's MDRO at a Primary Receipt Point, for gas

delivered within a Shipper's MDDO to a Primary Delivery Point, and

within a Shipper's Segment Path Rights according to the quantities

of gas nominated by such Shippers;

(ii) Pro-rata among FT-A, FT-L, and FT-GS Shippers for gas

(1) received from a Secondary Receipt Point or delivered to

a Secondary Delivery Point, as applicable, within a

Shipper's Segment Path Rights, or

(2) received from a Primary Receipt Point or delivered to a

Primary Delivery Point, as applicable, which is in

excess of a Shipper's MDRO or MDDO, as applicable, but

within a Shipper's Segment Path Rights,

according to the quantities of gas nominated by such

Shippers;