East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective

Fifth Revised Sheet No. 391 Fifth Revised Sheet No. 391 : Effective

Superseding: Fourth Revised Sheet No. 391

GENERAL TERMS AND CONDITIONS (Continued)

41. DISCOUNTING POLICY

41.1 Any Shipper desiring a discount of the maximum recourse rates for

service under Transporter's rate schedules must submit a valid

request for such discount pursuant to the procedures of this

Section 41. To be considered a valid request, Shipper must

complete and submit a request for discount via the LINK® System,

specifically including the information for all mandatory fields.

Upon receipt of a valid request for a discount, Transporter will

log such request and either deny or grant such request.

41.2 Order of Discounts. Transporter may, from time to time,

selectively adjust any or all of the rates charged to any

individual Shipper for service under Part 284 of the Commission's

regulations for which maximum and minimum rates are stated in this

FERC Gas Tariff. Discounting of rates and charges shall, however,

be done in the following order:

Demand Commodity*

1. Base Rate 1. Base Rate

2. TCRA Surcharge 2. TCRA Surcharge

* ACA surcharge is non-discountable.

41.3 In the event that Transporter agrees to discount its maximum rates

under any of its Open-access rate schedules, Transporter and

Shipper may agree to the types of discounts specified herein

without such discounts constituting a material deviation from

Transporter's pro forma service agreement. Transporter and

Shipper may agree that a specified discounted rate will apply: (i)

only to specified quantities under the service agreement; (ii)

only if specified quantities are achieved or only with respect to

quantities below a specified level; (iii) only during specified

periods of the Year or for a specifically defined period; (iv)

only to specified points, combination of points, markets,

transportation paths or other defined geographic area(s); (v) only

in a specified relationship to the quantities actually delivered

(i.e., that the reservation charge will be adjusted in a specified

relationship to quantities actually delivered); (vi) so that the

applicable rate may be adjusted in the following manner: when one

rate component, which was equal to or within the applicable

maximum and minimum recourse rates at the time Shipper received

the Discount Confirmation pursuant to Section 41.5 below

specifying the terms of the discount, subsequently exceeds the

applicable maximum recourse rate or is below the applicable

minimum recourse rate, so that such rate component must be

adjusted downward or upward to equal the new applicable maximum or

minimum recourse rate, then other rate components may be adjusted

upward or downward to achieve the agreed-upon overall rate, so

long as none of the resulting rate components exceed the maximum

recourse rate or are below the minimum recourse rate applicable to

the rate component (such changes to rate components shall be

applied prospectively,