East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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

Original Sheet No. 576 Original Sheet No. 576 : Effective

BALANCING AGREEMENT (continued)

(For Use at Points of Delivery)

ARTICLE VI

MISCELLANEOUS

6.1 Warranties - Balancing Party warrants (i) that as to any gas which it

delivers or causes to be delivered to Transporter hereunder to correct

an Operational Imbalance that it will have good title to such gas, free

and clear of all liens, encumbrances and claims whatsoever; (ii) that it

will at the time of delivery have the right to deliver or cause to be

delivered such gas; (iii) that it has the right to allocate all

deliveries from the Delivery Points in accordance with this Agreement;

and (iv) that it will indemnify and save Transporter harmless from

suits, actions, debts, accounts, damages, costs, losses and expenses

arising from or out of adverse claims of any or all persons to said gas

or to royalties, overriding royalties, taxes, or other charges thereon

or with regard to the allocation of gas hereunder. Balancing Party

represents and warrants to Transporter that all requisite

authorizations, if any, have been obtained as to any gas which Balancing

Party delivers or causes to be delivered hereunder.

6.2 Governing Bodies - This Agreement shall be subject to all applicable

laws, federal or state, and to all applicable rules and regulations of

any duly authorized federal, state or other government agency having

jurisdiction over the transactions described herein.

THE INTERPRETATION AND PERFORMANCE OF THIS CONTRACT SHALL BE IN

ACCORDANCE WITH AND CONTROLLED BY THE LAWS OF THE STATE OF TENNESSEE,

WITHOUT REGARD TO THE DOCTRINES GOVERNING CHOICE OF LAW.

6.3 Waivers - No waiver by either Party of any one or more defaults by the

other in the performance of this Agreement shall operate or be construed

as a waiver of any future default or defaults, whether of a like or of

different character.

6.4 Billings and Payments - Transporter shall bill and Balancing Party shall

pay for the correction of Operational Imbalances in cash in accordance

with Section 16 of the General Terms and Conditions specified in

Transporter's FERC Gas Tariff.

6.5 Incorporation of Tariff - Unless otherwise stated herein, the General

Terms and Conditions specified in Transporter's FERC Gas Tariff are

incorporated as part of this Agreement.