East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

Effective Date: 01/01/2009, Docket: RP09-76-000, Status: Effective

Second Revised Sheet No. 346 Second Revised Sheet No. 346

Superseding: First Revised Sheet No. 346

GENERAL TERMS AND CONDITIONS (Continued)

(b) The deadlines set forth in this Section 17.6 are only applicable

if (i) all the information provided by the parties to the

transaction is valid and the Replacement Shipper has been

determined to be creditworthy before the capacity release bid is

tendered; and (ii) there are no special terms or conditions of the

release. If the Releasing Shipper specifies a bid evaluation

methodology other than highest rate, net revenue or present value,

or any other special terms or conditions, the above timeline shall

apply; provided, however, one additional Business Day will be

added to the evaluation period. Such extended evaluation period

shall cause gas flow to be at least one day later than gas could

flow under the timeline set forth in Section 17.6(a).

17.7 Determination of Successful Bidder of Transportation Rights

(a) Bid Evaluation Methodologies: The Releasing Shipper shall specify

in the Release Request one of the following bid evaluation

methodologies: (i) highest rate, (ii) net revenue, or (iii)

present value. A Release Request submitted specifying one of

these methods shall be accorded the timeline treatment described

in Section 17.6. Releasing Shipper may choose another bid

evaluation method; however, such request shall be accorded the

timeline treatment described in Section 17.6(b). Transporter

shall apply the method chosen to determine the successful Bidder.

Transporter shall reject any bid that does not meet the minimum

bid rate(s), minimum Release Quantity or minimum term specified in

the Release Request. Transporter's application of Releasing

Shipper's bid evaluation method shall result in as many successful

Bidders as mandated thereby, provided that the volumes released to

each successful Bidder shall be no less than one Dekatherm. If

the Releasing Shipper desires to award to more than one winner,

the Releasing Shipper should allow for the acceptance of partial

MDTQ bids.

(b) If the present value method is chosen, then Transporter shall

determine the bid or bids having the highest net present value

("PV") based on the following formula:

-n

PV = (Bid Rate) x (Bid Quantity) x ((1-(1+i) ) / i)

where

Bid Rate = the daily reservation charge that the Bidder has

agreed to pay.

Bid Quantity = the Released Maximum Daily Transportation Quantity

stated in the Bid.