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

Second Revised Sheet No. 391B Second Revised Sheet No. 391B : Effective

Superseding: First Revised Sheet No. 391B

GENERAL TERMS AND CONDITIONS (Continued)

41. DISCOUNTING POLICY (continued)

41.5 The terms of any discount request granted by Transporter pursuant

to this Section 41 shall be transmitted by e-mail to Shipper in

the form of a Discount Confirmation. The Discount Confirmation

shall identify the applicable Shipper's name, contract number,

rate schedule, term of the discount, discount rate, applicable

quantities, point(s) of receipt and delivery, and/or the segment

being discounted. The Discount Confirmation may also include

other information required for posting under the Commission's

regulations and other conditions consistent with Section 41.3. No

particular discount transaction shall be contractually binding on

either Transporter or Shipper until Transporter has confirmed the

terms of the discount upon Transporter's e-mail to Shipper of the

Discount Confirmation for the transaction, subject to the

underlying Service Agreement being fully executed. All discounts

granted shall be effective no sooner than the beginning of the

next Gas Day following the Gas Day on which the request is granted

by Transporter. Once the Discount Confirmation is contractually

binding, the Discount Confirmation will constitute an addendum to

the underlying service agreement. Each such addendum is an

integral part of the underlying service agreement as if executed

by both parties and fully copied and set forth at length therein.

41.6 If Transporter's recourse rates are subject to refund at any time

during the effectiveness of a Discount Confirmation, with respect

to the applicable discounted rate, Shipper shall be entitled to

refunds of payments made by Shipper only in the event that the

final, non-appealable maximum recourse rate, whether usage-based

or reservation-based, as determined by the Commission for a given

time period is lower than the rate actually paid by Shipper during

such time period. Subject to the condition precedent set forth in

the immediately preceding sentence, Shipper's principal refund

amount shall be equal to (i) with respect to usage-based rates,

the product of (aa) the positive difference between the final,

non-appealable maximum recourse rate and the discounted rate, and

(bb) the quantities of gas delivered to Shipper, or for Shipper's

account, during the refund period; and (ii) with respect to

reservation-based rates, the product of (cc) the positive

difference between the final, non-appealable maximum recourse rate

and the discounted rate, (dd) the MDTQ covered by the discounted

rate, and (ee) the number of Months in the refund period (partial

Months shall be prorated for the number of Days in the Month that

fall within the refund period and a discounted rate that is not a

monthly rate shall be adjusted for purposes of this calculation to

reflect the monthly equivalent of the rate).