East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 03/03/2006, Docket: RP06-195-000, Status: Effective

First Revised Sheet No. 377 First Revised Sheet No. 377 : Effective

Superseding: Original Sheet No. 377

GENERAL TERMS AND CONDITIONS (Continued)

quality standards set forth in Section 2, nor shall such causes or

contingencies affecting the performance of said contract relieve

either party from its obligations to make payments of amounts then

due thereunder, nor shall such causes or contingencies relieve

either party of liability unless such party shall give notice and

full particulars of the same in writing or by fax to the other

party as soon as possible after the occurrence relied on.

24.3 Termination of agreement: If either Transporter or Shipper shall

fail to perform any of the covenants or obligations imposed upon

it by the service agreement, subject to the applicable provisions

of Transporter's FERC Gas Tariff, then in such event the other

party may at its option terminate said agreement by proceeding as

follows: the party not in default shall cause a written notice to

be served on the party in default stating specifically the cause

for terminating the agreement and declaring it to be the intention

of the party giving the notice to terminate the same; thereupon

the party in default shall have thirty days after the service of

the aforesaid notice in which to remedy or remove the cause or

causes stated in the notice for terminating the agreement, and if

within said period of thirty days the party in default does so

remove and remedy said cause or causes and fully indemnifies the

party not in default for any and all consequences of such breach,

then such notice shall be withdrawn and the agreement shall

continue in full force and effect. In case the party in default

does not so remedy and remove the cause or causes or does not

indemnify the party giving the notice for any and all consequences

of such breach, within said period of thirty days, the agreement

shall terminate. Any cancellation of the agreement pursuant to

the provisions of this paragraph shall be without prejudice to the

right of Transporter to collect any amounts then due to it for

natural gas service rendered prior to the time of cancellation,

and shall be without prejudice to the right of Shipper to receive

any gas that it has not received but which it has delivered to

Transporter for transportation, prior to the time of cancellation,

and without waiver of any remedy to which the party not in default

may be entitled for violations of the agreement.

25. TRANSPORTATION COST RATE ADJUSTMENT

25.1 The rates and charges for the Affected Rate Schedule (as defined

in Section 25.2 below) are subject to adjustments following the

effective date of the rates filed by Transporter on January 31,

1992 in Docket No. RP91-204; provided, however, that these rates

and charges may be adjusted no more frequently than on a quarterly

basis to reflect changes in Transportation Costs. "Transportation

Costs" are costs for the transmission and compression of

Transporter's gas by others (Account No. 858). These costs

include, among other charges, any non-gas commodity charges or any

other related charges billed to Transporter for transportation

within contract demand on an upstream pipeline