East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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

Original Sheet No. 591 Original Sheet No. 591 : Effective

BALANCING AGREEMENT

(For Use by Aggregator at Points of Delivery)

This Agreement is made, entered into and effective as of this ___ day of

_______________, ____, 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."

WITNESSETH:

WHEREAS, Transporter transports natural gas to the delivery point(s)

specified in Exhibit "A" attached hereto (Delivery Points);

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 from the 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

balances in a manner that facilitates the movement of gas for transportation

purposes;

WHEREAS, Balancing Party has all requisite legal authority to perform

balancing and scheduling at the delivery points on Exhibit A attached;

NOW, THEREFORE, Transporter and Balancing Party covenant and agree as

follows:

ARTICLE I

DEFINITIONS

The definitions found in Section 1 of Transporter's General Terms and

Conditions are incorporated herein by reference.