East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective

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

Superseding: Original Sheet No. 335B

GENERAL TERMS AND CONDITIONS (Continued)

15.4 Allocation of Limited Capacity

(a) Curtailment: If, on any Day, Transporter determines that the

capacity of its system, or any portion thereof including the

point(s) at which gas is tendered for transportation is

insufficient to serve all Shippers that are scheduled to receive

service on such Day, capacity that requires allocation shall be

allocated in a manner that results in curtailment of capacity, to

zero if necessary, in reverse of the order listed in Section

15.3(a) above if curtailing at a Receipt or Delivery Point or in

Section 15.3(b) above if curtailing at a pipeline location such as

a compressor station; provided, however, if capacity must be

allocated within the services included in Sections 15.3(a)(i)

through 15.3(a)(iii) or in Sections 15.3(b)(i) through

15.3(b)(iii), such capacity will be curtailed pro rata based on

Scheduled Quantities. If interruptible transportation must be

allocated, such transportation will be curtailed according to the

price being paid, with lower priced transportation being curtailed

before higher priced transportation. Provided that, for the

purpose of the foregoing sentence, any Shipper paying above the

maximum IT or IT-L rate shall be deemed to be paying the maximum

applicable rate. If PAL service must be allocated, such service

shall be curtailed according to the net present value of each

transaction, with transactions yielding a lower net present value

being curtailed before those transactions yielding a higher net

present value.

(b) [Reserved for Future Use]