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. 335A First Revised Sheet No. 335A : Effective

Superseding: Original Sheet No. 335A

GENERAL TERMS AND CONDITIONS (Continued)

(iii) 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, in which one or both such points are

located outside a Shipper's Contract Path, or

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

Delivery Point located within a Shipper's Contract Path, but in excess

of such Shipper's Segment Path Rights, or

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

Delivery Point, but in excess of such point's MDRO or MDDO,

respectively, and also in excess of Shipper's Segment Path Rights,

according to the quantities of gas nominated by such Shippers;

(iv) Current Month make up quantities to balance flows under an OBA;

(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.

Within each sequence listed in this Section 15.3(b), quantities of gas requested

to flow through a Posted Point of Restriction occurring within the Contract Path

shall have priority over quantities of gas requested to flow through a Posted

Point of Restriction occurring outside the Contract Path.

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.