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. 593 Second Revised Sheet No. 593 : Effective

Superseding: First Revised Sheet No. 593

BALANCING AGREEMENT

(For Use by Aggregator at Points of Delivery)

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

to monitor actual deliveries at the 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 or cause

such requests to be made at any time during the Gas Day by coordinating

with Transporter's gas dispatchers. Balancing Party will notify

Transporter or cause Transporter to be notified of any such adjustments.

Transporter will use reasonable efforts to deliver those changed

quantities when the operating conditions on Transporter's system permit,

taking into consideration the nominations made by firm customers on

Transporter's system.

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 Article III on a daily basis during

the production month to determine the estimated Monthly Operational

Imbalance at all of the Delivery Point(s). Transporter shall make the

estimated Daily Variance and Monthly Operational Imbalance at each

Delivery Point available to Balancing Party on or before the third

Business Day after each Gas Day. Balancing Party shall make or cause to

be made adjustments in nominations and actual deliveries during the

production month to adequately control imbalance levels. If the

Balancing Party fails to take such corrective action, or fails to cause

such corrective action to be taken, Transporter may, upon forty-eight

(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 pursuant to this Agreement.

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 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 which threaten the

integrity of its system.