Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 09/01/1996, Docket: RP96-312-002, Status: Effective

Substitute Fourth Revised Sheet No. 128 Substitute Fourth Revised Sheet No. 128 : Effective

Superseding: Fourth Revised Sheet No. 128

RATE SCHEDULE PAT (continued)

PREFERRED ACCESS TRANSPORTATION SERVICE

4.4 Fuel and Losses: Shipper shall furnish the quantity of

gas required for fuel and losses associated with

Transporter's provision of transportation service

pursuant to this Rate Schedule. The quantity of gas

retained by Transporter for fuel and losses shall be

equal to: (i) the quantity of gas scheduled for delivery

to Transporter, multiplied by (ii) the applicable

percentage shown in the Summary of Rates and Charges in

Transporter's effective FERC Gas Tariff for the receipt

and delivery zones applicable to the specific

transportation service provided for Shipper hereunder;

provided, however, that for any service which is rendered

entirely by displacement, Shipper shall furnish only that

quantity of gas which is associated with losses as shown

in the Summary of Rates and Charges in Transporter's

effective FERC Gas Tariff.

4.5 For each month in which service is provided under the

Transportation Contract, Shipper shall pay Transporter

the rate specified in Section 4.1 above multiplied by the

aggregate quantity of gas nominated by Shipper for

transportation by Transporter during the relevant month.

In addition, no later than 15 days prior to November 1

during each Winter Season which occurs under the

Transportation Contract, Shipper shall prepay Transporter

for the first month of service, and each month

thereafter, Shipper shall continue to pay Transporter, in

advance, for the service to be received in the next

calendar month during the Winter Season.

4.6 In the event that, on any day, Shipper should fail to

nominate and/or confirm or take delivery of Shipper's

full Transportation Quantity, Transporter shall not make

adjustments to any amount prepaid by Shipper for service

hereunder on such day and will not include this volume

when calculating the aggregate quantity of gas as stated

in Section 7.3.

4.7 Notwithstanding any provision of Transporter's effective

FERC Gas Tariff to the contrary, Transporter and Shipper

may mutually agree in writing to rates, rate components,

charges, or credits for service under this Rate Schedule

that differ from those rates, rate components, charges,

or credits that are otherwise prescribed, required,

established or imposed by this Rate Schedule or by any

other applicable provision of Transporter's effective

FERC Gas Tariff. If Transporter agrees to such differing

rates, rate components, charges, or credits (referred to

hereinafter and in this Tariff as "Negotiated Rates"),

then the Negotiated Rate[s] shall be effective only for

the period agreed upon by Transporter. During such

period, the Negotiated Rate shall govern and apply to the

Shipper's service and the otherwise applicable rate, rate

component, charge, or credit, which the parties have