East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 07/01/2004, Docket: RP04-362-000, Status: Effective

Original Sheet No. 551 Original Sheet No. 551 : Effective

BALANCING AGREEMENT

(For Use Under Rate Schedule LMS-PA)

THIS Agreement is made, entered into and effective as of this _____ day of

___________, ____, by and between East Tennessee Natural Gas, LLC, a

Tennessee limited liability company hereinafter referred to as "Transporter",

and ____________________, a ____________________________ corporation,

hereinafter referred to as "Balancing Party". Transporter and Balancing

Party shall be referred to herein collectively as "Parties".

WITNESSETH:

WHEREAS, Transporter receives gas for transportation at the receipt

point(s) specified in Exhibit A attached hereto ("Receipt Point(s)");and

WHEREAS, the gas actually delivered at the Receipt Point(s) is at times

different than the quantities scheduled to be transported by Transporter from

those points;

WHEREAS, Transporter and Balancing Party desire to allocate the

transportation of natural gas from the Receipt Point(s) based upon Scheduled

Quantities and to allocate any difference between such Scheduled Quantities

and actual deliveries at the Receipt Point(s) (Operational Imbalance) to this

Agreement;

WHEREAS, Transporter and Balancing Party desire to resolve Operational

Imbalance in subsequent periods in accordance with the provisions of Rate

Schedule LMS-PA;

NOW, THEREFORE, Transporter and Balancing Party covenant and agree as

follows:

ARTICLE I - DEFINITIONS

The definitions found in Section 1 of Transporter's General Terms and

Conditions are incorporated herein by reference.