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

First Revised Sheet No. 353 First Revised Sheet No. 353

Superseding: Original Sheet No. 353

GENERAL TERMS AND CONDITIONS (Continued)

(g) Subsequent to the posting of the Release Request or the Bid on

LINK®, Transporter may, in its sole discretion, invalidate any

Release Request or any Bid that does not conform in any material

respect to the requirements of this Section 17. Such

invalidated Release Request or Bid shall be deemed null and

void.

(h) Notwithstanding anything herein to the contrary, all Releasing

Shippers that release capacity on a temporary basis shall remain

responsible for payment of all demand charges for released

transportation; provided, however, that Transporter and Shipper

may, in connection with their agreement to a Negotiated Rate

under a firm transportation rate schedule, agree upon Releasing

Shipper payment obligations and crediting mechanisms in the

event of a capacity release that vary from or are in addition to

those set forth herein and in Subsection (i) of this Section;

provided that nothing in the foregoing proviso shall authorize

Transporter or Shipper to violate the Commission's policy with

respect to negotiation of terms and conditions of service. The

Releasing Shipper shall receive a demand credit equal to the

demand dollars which Transporter bills to the Replacement

Shipper. A demand rate for the purposes of this Section

consists of (i) the base demand rate, and (ii) all applicable

surcharges. Any discount from said rate comes first off the

surcharges and then off the base demand rate. Therefore a

Releasing Shipper paying a discounted rate is only entitled to

receive any revenues from the release of its capacity that

exceed the amount of the applicable surcharges.

(i) Transporter shall bill Replacement Shipper in accordance with

Section 16 of the General Terms and Conditions based upon the

rates, charges, and surcharges incorporated in the Exhibit R to

the Released Transportation Service Agreement. The commodity

charges for the Replacement Shipper will include the maximum

commodity rate under the applicable rate schedule including all

adjustments. If the Replacement Shipper fails to pay all or any

portion of any bill by the due date specified on the bill,

Transporter shall send an invoice to the Releasing Shipper for

all unpaid amounts up to the amount of the Releasing Shipper's

reservation charge, which the Releasing Shipper shall pay to

Transporter with interest on the unpaid amount, which interest

shall be calculated from the date that Transporter credited the

Releasing Shipper for the applicable demand charges in accord

with (h) above. The interest rate used in this calculation will

be determined in accordance with Section 154.501(d) of the

Commission's Regulations. Releasing Shipper shall submit the

payment within ten days of