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

First Revised Sheet No. 552 First Revised Sheet No. 552 : Effective

Superseding: Original Sheet No. 552

BALANCING AGREEMENT

(For Use Under Rate Schedule LMS-PA)

ARTICLE II - NOMINATIONS AND CONFIRMATIONS

2.1 Confirmation of Nominations - Prior to the beginning of each Month this

Agreement is in effect, Balancing Party shall confirm or cause to be

confirmed the quantities nominated to be delivered by Balancing Party

or for Balancing Party's account to Transporter at the Receipt Point(s)

commencing on the first Day of the Month following the Confirmation.

Balancing Party shall reconfirm any modification to such Confirmations

or cause such modification to be reconfirmed prior to the commencement

of the revised service. Transporter shall notify Balancing Party or

Balancing Party's designee of any problem(s) regarding the scheduling

of gas in accordance with Confirmations made hereunder within one

Business Day after each daily Confirmation and within four Business

Days after the end of each calendar month for an aggregate of all

Confirmations for a calendar month, unless mutually agreed to

otherwise. Balancing Party shall notify Transporter or cause

Transporter to be notified of any errors in the quantity scheduled

pursuant to its Confirmation within one Business Day of receipt of such

information from Transporter. If Balancing Party fails to confirm the

quantities to be transported and/or purchased at any Receipt Point(s)

in accordance with the above, and such failure continues for seven

Business Days or more within the calendar month (whether or not such

Days are consecutive) after 24-hour written notice to the Balancing

Party by Transporter for each occurrence of Balancing Party's failure

to confirm, then the affected points shall be deleted from Exhibit A

upon written notice from Transporter at the end of that calendar month.

2.2 Allocations Based on Scheduled Quantities - The Parties intend that the

quantity actually delivered at the Receipt Point(s) will equal the

Scheduled Quantities. Balancing Party shall use all reasonable efforts

to ensure that the quantities actually delivered at the Receipt

Point(s) are equal to the Scheduled Quantities. Unless prohibited by

applicable law or regulation, all transportation services by

Transporter shall be allocated each Day in accordance with Rate

Schedule LMS-PA of Transporter's FERC Gas Tariff, or by such other

methods as may be mutually agreed to by both Parties.

2.3 Allocation of Variances - The difference on any Day between the

Scheduled Quantities at all Receipt Points and the total actual

quantity delivered at all Receipt Point(s) shall be the Daily Variance

and shall be allocated to this Agreement. The difference between the

sum of the Scheduled Quantities during a calendar month and the total

actual quantity delivered at the Receipt Point(s), shall be the Monthly

Operational Imbalance. Any Monthly Operational Imbalances will be

corrected in accordance with Article III.