East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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

First Revised Sheet No. 396 First Revised Sheet No. 396 : Effective

Superseding: Original Sheet No. 396

GENERAL TERMS AND CONDITIONS (Continued)

47. PENALTIES AND PENALTY CREDITING MECHANISM (continued)

47.2 Balances Remaining Upon LNGS Contract Termination

In the event that an LNGS Shipper fails to dispose of its entire

Storage Balance on or before the termination date of its storage

contract and Transporter retains such Storage Balance pursuant to

the provisions of Section 12 of Rate Schedule LNGS, Transporter

shall dispose of such remaining Storage Balance by auction

pursuant to Section 48 of the General Terms and Conditions of this

FERC Gas Tariff. Transporter shall credit the net proceeds

received from such auction to all other Shippers holding an LNGS

storage agreement ("Qualifying LNGS Shipper") based on the ratio

of the total charges paid by each Qualifying LNGS Shipper for

storage service to the total amount of such charges paid by all

Qualifying LNGS Shippers during the Month in which the auction of

the Storage Balance occurred. For the purposes of this section,

the term "net proceeds" shall mean the total proceeds received

from the auction less the accumulated storage charges applicable

pursuant to Rate Schedule LNGS.

Any credits required by this Section 47.2 shall be made within 90

days following each anniversary of the Implementation Date.