East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-315-000, Status: Effective

Fourth Revised Sheet No. 373 Fourth Revised Sheet No. 373

Superseding: Third Revised Sheet No. 373

GENERAL TERMS AND CONDITIONS (Continued)

19. SEGMENTATION

19.1 Segmentation by Nomination

(a) To the extent operationally feasible, a Shipper under Rate

Schedule FT-A may segment through the nomination process its

capacity entitlements on any segment of Transporter's system

that is not defined as an Incremental Lateral. Furthermore,

to the extent operationally feasible, a Shipper under Rate

Schedule FT-L may segment through the nomination process its

capacity entitlements on any segment solely on the

applicable Incremental Lateral. Shipper may nominate up to

its original contract MDTQ concurrently in two or more

segments within its Contract Path; provided that the

combined scheduled volumes of the two or more nominated

segments do not exceed the Shipper's original contract MDTQ

on any segment where the nomination paths overlap. The

nomination of a Forward Flow Nomination and a Reverse Flow

Nomination to the same point pursuant to Shipper's

segmentation rights in excess of Shipper's contract MDTQ

shall not be deemed to be an overlap, provided that the two

transactions do not overlap on a lateral and provided

further that such Delivery Point is the only Delivery Point

covered by an Operational Balancing Agreement pursuant to

Rate Schedule LMS-MA.

(b) The following requirements must be met in order to segment

by nomination:

(i) meter operators must elect to place their individual

meters into a Segmentable OBA;

(ii) elections to place a meter into a Segmentable OBA must

be made no less than five (5) Business Days prior to

the end of a Month, to be effective on the first Day

of the following Month;

(a) Transporter will maintain a listing of

Segmentable Points on the LINK® System and shall

update the listing prior to the timely

nomination deadline for the first Gas Day of the

Month.

(iii) Shippers who wish to segment a contract must nominate

to meters subject to a Segmentable OBA; and

(iv) quantities nominated under a contract may not exceed

the contract's MDTQ if any nominated Delivery Point is

part of a Non-Segmentable OBA.

Elections by a meter operator to remove a meter from a

Segmentable OBA must be made no less than five (5) Business

Days prior to the end of a Month, to be effective on the

first day of the following Month.

(c) Segmentation of firm capacity shall be deemed operationally

feasible unless such segmentation would adversely affect any

of the following:

(i) Transporter's Maximum Allowable Delivery service;

(ii) Transporter's ability to allow meter imbalances to

roll up to the operator level for OBAs;

(iii) Transporter's ability to maintain operating pressures

on small diameter pipes for delivery of firm volumes;

(iv) Transporter's operational flexibility for the fill

requirement of the LNG facility;

(v) Transporter's flexibility of continuous nominations;

or

(vi) Transporter's ability to meet its firm service

obligations.