Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 05/01/2000, Docket: RP00- 229-000, Status: Effective

Third Revised Sheet No. 110 Third Revised Sheet No. 110 : Effective

Superseding: Second Revised Sheet No. 110

RATE SCHEDULE IS

INTERRUPTIBLE STORAGE SERVICE (continued)

10. TRANSFER OF GAS IN-PLACE

10.1 Except as provided in Section 3.3 of this Rate Schedule, Shipper may

transfer a portion of Shipper's Storage Inventory on a daily basis to

Transporter, another party or to its other storage account(s) provided

that Shipper has all necessary authority to sell the gas; and that (a) the

transferee of the storage account(s) has a storage service agreement with

Transporter under Rate Schedules FS or IS with the same injection and

withdrawal point as Shipper's IS Service Point, (b) transferee

acknowledges transfer of the gas; and (c) Shipper's and transferee's

transportation service agreements to move gas to storage are under the

Rate Schedules FT-A, FT-G, PAT, IT or IT-X.

10.2 In addition, in the event Shipper owns gas in a storage field(s) jointly

owned by Transporter and a third party storage provider, Shipper may

transfer that gas from Shipper's account under its storage contract with

the third party storage provider to Shipper's account with Transporter or

vice-versa if each of the following conditions are met: (a) such a

transfer is operationally feasible as determined by Transporter; (b) the

third party storage provider consents to the transfer; (c) all affected

storage fields are jointly owned by Transporter and the same third party

storage provider and Shipper has a storage contract with the third party

storage provider covering storage at all affected storage fields; and (d)

Shipper's transportation service agreements to move gas to storage are

under Rate Schedules FT-A, FT-G, PAT, IT or IT-X.

10.3 At least one business day prior to the effective date of the proposed in-

place transfer, the Shipper and the transferee will notify Transporter of

the proposed transfer. Notification will be via PASSKEY and contain the

names of both parties, the effective date of the proposed transfer, the

volume of gas to be transferred, the IS Service Point into which the gas

was injected, and a statement that the conditions of section 10.1 have

been met. Such notification by PASSKEY shall be followed by a written

notification signed by both parties. Title transfer of the IS gas will

occur at that start of the designated effective date of the transfer.

11. TERMINATION OF CONTRACT

Shipper must withdraw its Storage Balance on or before the expiration of its

storage contract. If Shipper fails to withdraw its entire Storage Balance or

fails to transfer such Storage Balance prior to the expiration of its