East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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

Third Revised Sheet No. 347 Third Revised Sheet No. 347

Superseding: Second Revised Sheet No. 347

GENERAL TERMS AND CONDITIONS (Continued)

i = interest rate per Day, based on an annual rate

of ten (10) percent; and

n = the term proposed by the Bidder, expressed in

number of Days.

(c) If the net revenue method is chosen, Transporter shall

determine the bid or bids having the highest net revenue

(NR) using the following formula:

NR= (Bid Rate) x (Bid Term) x (Bid MDTQ)

where

Bid Rate = the daily reservation charge which the

Bidder has agreed to pay.

Bid Term = the term proposed by the Bidder, in

Days.

Bid MDTQ = the MDTQ stated in the Bid, measured in

Dekatherms.

(d) If a Release Request includes a Pre-arranged Bidder, then

the released transportation rights shall be awarded to the

Pre-arranged Bidder if:

(i) the Pre-arranged Bidder's Bid equals or exceeds the

Bid with the highest value, as determined by the bid

evaluation method specified in the Releasing Shipper's

Release Request; or

(ii) the Pre-arranged Bidder agrees to match any Bid having

a higher value value, within the time period provided

by Section 17.6.