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. 553 Second Revised Sheet No. 553 : Effective

Superseding: First Revised Sheet No. 553

BALANCING AGREEMENT

(For Use Under Rate Schedule LMS-PA)

2.4 Reports on Actual Receipts - Should Transporter not have the ability to

monitor actual deliveries at any Receipt Point(s) on a daily basis,

Balancing Party shall provide to Transporter the best available

information compiled on a daily basis on the actual deliveries at such

Receipt Point(s) within two Business Days after the Gas Day.

Furthermore, the Balancing Party shall provide or have provided to

Transporter, meter statements within four (4) Business Days after the

close of a calendar month at any Receipt Point(s) where Transporter

does not operate the meter; provided that if Balancing Party provides

flow charts within four Business Days of each Gas Day during the Month,

Transporter will integrate such charts for Balancing Party at no cost,

with the Balancing Party retaining the right to examine the integration

of such charts within one year. If Balancing Party does not provide or

have such information of meter statements at any Receipt Point(s),

provided to Transporter, or such information contains significant

inaccuracies as reasonably determined by Transporter, and such

conditions continue for fifteen Days or more (whether or not such Days

are consecutive) after the first notice to the Balancing Party, then

all affected Receipt Points shall be deleted from this Agreement upon

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

2.5 Deliveries in Excess of Daily Limit - Balancing Party may not deliver

gas in excess of the OFO daily variance tolerance applicable to the

Receipt Point(s) as specified in an Operational Flow Order issued

pursuant to Transporter's General Terms and Conditions. Any such

deliveries will be treated as unauthorized overruns and will be subject

to an Action Alert Penalty or a Balancing Alert Penalty, as applicable,

in accordance with Section 5 of Rate Schedule LMS-PA of Transporter's

FERC Gas Tariff.

ARTICLE III - CORRECTION OF OPERATIONAL IMBALANCES

3.1 Corrections During the Month - Estimated metered quantities, or actual

metered quantities where available, shall be used by Transporter for

purposes of adjustments under this section on a daily basis during the

calendar month to determine the estimated Monthly Operational Imbalance

at all of the Receipt Point(s). Transporter shall make the estimated

Daily Variances and Monthly Operational Imbalance available to

Balancing Party by the end of the third Business Day after each Gas

Day. Transporter may make or Balancing Party may make or cause to be

made adjustments in nominations and actual deliveries, upon 24 hours

notice by making imbalance make up nominations pursuant to this

Agreement and in accordance with the applicable provisions of

Transporter's FERC Gas Tariff. Any adjustments will offset pre-

existing imbalances accrued during that Month.