Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 10/01/1998, Docket: RP98-378-000, Status: Effective

Fourth Revised Sheet No. 127 Fourth Revised Sheet No. 127 : Effective

Superseding: Second Sub 3rd Revised Sheet No. 127

RATE SCHEDULE PAT (continued)

PREFERRED ACCESS TRANSPORTATION SERVICE

4. RATES AND CHARGES

4.1 Applicable Rates: The rates for service under this Rate Schedule are the

applicable maximum rates shown in the Summary of Rates and Charges in

Transporter's effective FERC Gas Tariff; provided, however, that Transporter,

upon notice to Shipper, has the right at any time and from time to time to

adjust the rate applicable to any transportation service provided from

specified Receipt Points to specified Delivery Points to any level not less

than the minimum rates nor more than the maximum rates established for service

under this Rate Schedule and set forth in the Summary of Rates and Charges in

Transporter's effective FERC Gas Tariff. In the event that Transporter makes

such an adjustment, such adjusted rate: (a) shall apply solely to

transportation service at the receipt and/or delivery points agreed to by

Transporter; and (b) shall be applicable solely for the quantity of gas and

term agreed to by Transporter. By mutual agreement between Transporter and

Shipper, discounts may be limited consistent with the provisions of Section 5.1

of the pro forma service agreement applicable to this Rate Schedule PAT.

In the event that Transporter and Shipper agree to establish a rate which is not

subject to change and which is to be charged for the duration of the PAT Service

Agreement, then such rate will be set forth in the Service Agreement. Transporter

shall file with the Commission the required reports for any rate charged which is less

than the applicable maximum rates for service under this Rate Schedule.

4.2 New Facilities Charge: In addition to the charges pursuant to Section 4.1 of this

Rate Schedule, Transporter shall charge Shipper an amount equal to the total cost to

Transporter of any facilities constructed at Shipper's request in order to provide

transportation service under this Rate Schedule ("New Facilities Charge").

Transporter shall not use the amounts so collected as either revenues or costs in

establishing its general system rates. The applicable New Facilities Charge shall

be stated in the Transportation Contract.