East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-76-001, Status: Effective

Substitute Second Revised Sheet No. 368 Substitute Second Revised Sheet No. 368

Superseding: Second Revised Sheet No. 368

GENERAL TERMS AND CONDITIONS (Continued)

(f) Notwithstanding anything herein to the contrary, all Releasing Shippers

that release capacity on a temporary basis shall remain responsible for

payment on all demand charges for released storage; provided, however, that

Transporter and Shipper may, in connection with their agreement to a

Negotiated Rate under a firm storage 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 Subsection (f) 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.

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 Storage Service

Agreement. 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 Release 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. 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 receipt of Transporter's invoice. Releasing Shipper

shall be responsible for obtaining reimbursement for any such payment from

Replacement Shipper. Failure of either the Replacement Shipper or

Releasing Shipper to pay bills shall entitle Transporter to exercise the

remedies available under the applicable service agreements and this FERC

Gas Tariff, including suspension of service to the Releasing Shipper and

the Replacement Shipper, as well as any other remedies available to

Transporter.

(g) Except in the case of a permanent release, the Replacement Shipper's

service under a Released Storage Service Agreement shall be subject to and

governed by the terms and conditions of the Releasing Shipper's LNGS

Agreement, the LNGS Rate Schedule, and the Released Storage Service

Agreement.

(h) Except in the case of a permanent release, any increase in Transporter's

rates, charges, and surcharges shall remain the responsibility of the

Releasing Shipper; provided, however, that the Releasing Shipper may

provide in its Release Request for the rates, charges or surcharges for

released storage rights to increase in accordance with such increase in

Transporter's rates, charges, and surcharges. Any refunds of any rates or

charges ordered by the Commission shall be paid by Transporter to the

Releasing Shipper.

(i) For releases that become effective on or after July 30, 2008, the rate paid

by a Replacement Shipper in any capacity release transaction with a term of

one (1) year or less which is not subject to the maximum rate cap will be

deemed to be a final rate and is not subject to refund if the effective

date of the release is on or before one (1) year from the date on which

Transporter was notified of the release.

18.14 Transporter's Rights to Terminate Temporary Capacity Releases.

(a) In the event of a temporary release for which (1) the Releasing Shipper no

longer satisfies Transporter's credit requirements as outlined in Section 6

of Transporter's General Terms and Conditions and (2) the reservation

charge specified in the effective Exhibit R to the Released Storage Service

Agreement is less than the level of the reservation charge which the

Releasing Shipper was obligated to pay Transporter (or, if the releasing