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. 594 Original Sheet No. 594 : Effective

BALANCING AGREEMENT

(For Use by Aggregator at Points of Delivery)

ARTICLE IV

TERM

4.1 Duration of Agreement - Subject to the other termination rights

provided herein, this Agreement shall be in full force from the

date hereof, for a primary term of one month 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.

4.2 Continuing Obligations - Following the termination of this

Agreement, any remaining Operational Imbalance shall be corrected

in cash in accordance with Rate Schedule LMS-MA of Transporter's

FERC Gas Tariff, unless the parties mutually agree otherwise;

provided, however, that Transporter has notified Balancing Party

of such imbalance no later than twelve months after the

termination of this Agreement.

4.3 This Agreement will terminate automatically upon written notice

from Transporter in the event that Balancing Party fails to pay

all of the amount of any bill for service rendered by Transporter

hereunder in accord with the terms and conditions of Section 16 of

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

ARTICLE V

IMBALANCE CHARGES

5.1 Current Charges - Commencing upon the date of execution, the

rates, charges, and surcharges to be paid by Balancing Party to

Transporter shall be in accordance with Transporter's Rate

Schedule LMS-MA and the General Terms and Conditions of

Transporter's FERC Gas Tariff.

5.2 Incidental Charges - Balancing Party agrees to reimburse

Transporter for any filing or similar fees, which have not been

previously paid for by Balancing Party, which Transporter incurs

in rendering service hereunder.

5.3 Changes in Rates and Charges - Balancing Party agrees that

Transporter shall have the unilateral right to file with the

appropriate regulatory authority and make effective changes in (a)

the rates and charges applicable to service pursuant to

Transporter's Rate Schedule LMS-MA, (b) the rate schedule(s)

pursuant to which service hereunder is rendered, or (c) any

provision of the General Terms and Conditions applicable to