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. 574 Second Revised Sheet No. 574 : Effective

Superseding: First Revised Sheet No. 574

BALANCING AGREEMENT (continued)

(For Use at Points of Delivery)

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

metered quantities where available, may be used by Transporter for

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

production month to determine the estimated Operational Imbalance at all

of the Delivery Point(s). Transporter shall make the estimated Daily

Variances and Monthly Operational Imbalance at each Delivery Point

available to Balancing Party on or before the third Business Day after

each Gas Day. Adjustments in nominations and actual deliveries will be

made by Balancing Party during the production month to adequately

control imbalance levels. If Balancing Party fails to take such

corrective action, Transporter may, upon 48 hours' notice, adjust the

Scheduled Quantities and actual deliveries during the remainder of the

production month to adequately control imbalance levels. Any such

adjustments will be incorporated in the daily nominations confirmed

between Transporter and Balancing Party.

3.3 Corrections in Subsequent Periods - As soon as practicable following the

close of each Month, Transporter will send Balancing Party a statement

setting forth the Monthly Operational Imbalance existing at the end of

the prior Month. Any Monthly Operational Imbalance shall be corrected

in accordance with the provisions of Section 8 of Rate Schedule LMS-MA

of Transporter's FERC Gas Tariff, unless the Parties mutually agree

otherwise.

3.4 Measurement of Operational Imbalance - Measurement of gas for all

purposes shall be in accordance with Transporter's FERC Gas Tariff.

3.5 Operational Integrity - Nothing in this Article III shall limit

Transporter's right to take action as may be required to adjust

deliveries of gas in order to alleviate conditions that threaten the

integrity of its system.

ARTICLE IV

TERM

4.1 Duration of Agreement - Subject to the other termination rights provided

herein, this Agreement shall be in full force from ______________, __,

for a primary term commensurate with that of the underlying converted

firm Transportation Agreements and shall continue thereafter on a month-

to-month basis unless canceled by either Party upon thirty days' prior

written notice with the termination to be effective at the end of a

calendar month. Notwithstanding the above, if any material problems

arise as a result of the provisions of this Agreement, then the Parties

will enter into good faith negotiations to amend this Agreement to

resolve such problems. If the Parties are unable to resolve such

problems as a result of such negotiations, then either Party may

terminate this Agreement upon forty-eight (48) hours' prior written

notice, with the termination to be effective at the end of a calendar

month.