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. 573 First Revised Sheet No. 573 : Effective

Superseding: Original Sheet No. 573

BALANCING AGREEMENT (continued)

(For Use at Points of Delivery)

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

Scheduled Quantities and the actual quantity delivered at the Delivery

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

Delivery Point(s) during the calendar month shall be the Monthly

Operational Imbalance. Any Monthly Operational Imbalances will be

resolved in accordance with Article III.

2.4 Deliveries in Excess of Daily Limit - On any Day which Balancing Party

takes gas in excess of the daily variance tolerance for the delivery

point as established in an Operational Flow Order issued pursuant to

Transporter's General Terms and Conditions, the Balancing Party shall be

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

applicable, for all such excess volumes in accord with Section 14.9 of

the General Terms and Conditions of Transporter's FERC Gas Tariff.

2.5 Reports on Actual Deliveries - Should Transporter not have the ability

to monitor actual deliveries at any Delivery Point 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

Delivery Point(s) within two Business Days after the date of delivery.

Nothing in this section will require Balancing Party to install metering

devices where none currently exist.

ARTICLE III

CORRECTION OF OPERATIONAL IMBALANCES

3.1 Corrections in Flow Rates During a Day - Balancing Party will be able to

request adjustments to actual deliveries at its Delivery Points at any

time during the Gas Day by coordinating with Transporter's gas

dispatchers. Transporter will use reasonable efforts to accommodate

those changed quantities when the operating conditions on Transporter's

system permits, taking into consideration the nominations made by firm

customers on Transporter's system.