East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 571 Original Sheet No. 571 : Effective

BALANCING AGREEMENT

(For Use at Points of Delivery)

This Agreement is dated ____________________, _____ 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 collectively herein as

"Parties".

W I T N E S S E T H:

WHEREAS, Transporter transports natural gas to the delivery

point(s) specified in Exhibit "A" attached hereto ("Delivery Points")

and Balancing Party receives such gas from Transporter;

WHEREAS, the gas actually received at the Delivery Point(s) is at

times different than the quantities scheduled to be transported by

Transporter to those points;

WHEREAS, Transporter and Balancing Party desire to aggregate all

quantities delivered at all of the Delivery Points for balancing

purposes and to allocate the transportation of natural gas to Delivery

Point(s) based upon Scheduled Quantities and to allocate any difference

between such Scheduled Quantities and actual deliveries at the Delivery

Point(s) (Operational Imbalance) to this Agreement;

WHEREAS, Transporter and Balancing Party desire to correct the

Operational Imbalances in subsequent periods in accordance with the

provisions of Rate Schedule LMS-MA of Transporter's FERC Gas Tariff,

unless the Parties mutually agree otherwise;

WHEREAS, Transporter and Balancing Party desire to implement

operating rules designed to encourage conduct that maintains

Transporter's system balance in a manner that facilitates the movement

of gas for transportation purposes.

NOW, THEREFORE, Transporter and Balancing Party covenant and agree

as follows: