East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 10/01/2007, Docket: RP00-469-013, Status: Effective

Original Sheet No. 373C Original Sheet No. 373C : Effective

GENERAL TERMS AND CONDITIONS (Continued)

19. SEGMENTATION

19.2 Segmentation via Capacity Release

(a) A Shipper under Rate Schedule FT-A may segment through the

capacity release process its capacity entitlements on any

segment of Transporter's system that is not defined as an

Incremental Lateral. A Shipper under Rate Schedule FT-L may

segment through the capacity release process its capacity

entitlements on any segment solely on the applicable

Incremental Lateral. Solely for purposes of capacity release,

segmentation can occur at any Receipt Point or Delivery Point

regardless of whether such points are subject to a

Segmentable or Non-Segmentable OBA. A Shipper can segment

its capacity entitlements at the head of any lateral within

the Shipper's Contract Path.

(b) A releasing contract and all replacement contracts of such

releasing contract are considered to be "related". The sum

of all nominations under all such related releasing and

replacement contracts which have been scheduled pursuant to

Section 15.3 cannot exceed the original releasing contract's

MDTQ in any segment. In such circumstances, nominations

having the lowest scheduling priority will be the first to be

reduced. Within such Scheduling Priority, the last nomination

submitted into the LINK® system will be the first to be

reduced.

(c) When overlapping nominations in a segment (i) exceed the

original releasing contract's MDTQ, (ii) are outside the

Releasing Shipper's and Replacement Shippers' Contract Path,

and (iii) are being scheduled during the same nomination

cycle, the determination of the nomination(s) to be reduced

will be made via the Overlap Priority Percentage assigned by

the Releasing Shipper at the time the capacity release offer

was created. If no Overlap Priority Percentage was provided

by the Releasing Shipper at the time the capacity release

offer was created, all nominations will be reduced on a

prorata basis.

(d) Subject to further agreement with Transporter, discounts

under the FT-A or FT-L service agreement, as applicable,

shall apply to segmented capacity only to the extent

consistent with point or volume discount limits under the FT-

A or FT-L service agreement, as applicable, being segmented

or released.