Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 11/03/2001, Docket: RP02- 17-000, Status: Effective

Sixth Revised Sheet No. 154 Sixth Revised Sheet No. 154 : Effective

Superseding: Fifth Revised Sheet No. 154

RATE SCHEDULE IT

INTERRUPTIBLE TRANSPORTATION SERVICE (continued)

5.5 Fuel and Losses: Shipper shall furnish the quantity of gas required for

fuel and losses associated with rendering transportation service pursuant

to this Rate Schedule. The quantity of gas retained by Transporter for

fuel and losses shall be equal to the quantity of gas scheduled for

delivery to Transporter multiplied by the applicable percentage shown in

the Summary of Rates and Charges in Transporter's effective FERC Gas

Tariff for the zone of receipt and zone of delivery applicable to the

transportation service. However, for service that is rendered entirely

by displacement, Shipper shall furnish only that quantity of gas

associated with losses as shown in the Summary of Rates and Charges in

Transporter's effective Tariff.

5.6 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 agreed to replace

with the Negotiated Rate, shall not apply to, or be available to, the

Shipper. At the end of such period, the otherwise applicable maximum

rates or charges shall govern the service provided to Shipper. Only

those rates, rate components, charges, or credits identified by

Transporter and Shipper in writing as being superseded by a Negotiated

Rate shall be ineffective during the period that the Negotiated Rate is

effective; all other rates, rate components, charges, or credits

prescribed, required, established or imposed by this Rate Schedule or

Transporter's Tariff shall remain in effect. Transporter shall make any

filings at the FERC necessary to effectuate a Negotiated Rate.

5.7 Incremental Lateral Charge: In addition to the other charges pursuant

to this Rate Schedule, to the extent that transportation service is

provided utilizing an Incremental Lateral, as defined in Article XVIII,

Section 2 of the General Terms and Conditions, Transporter shall charge

Shipper for each month of service an Incremental Lateral charge for the

applicable Incremental Lateral(s). The Incremental Lateral Charge will

be based on the applicable Incremental Lateral rate shown in the Summary

of Rates and Charges in Transporter's effective FERC Gas Tariff

multiplied by the dekatherms of natural gas scheduled for delivery by

Transporter to Shipper utilizing the applicable Incremental Lateral.

For transportation service provided solely through the applicable

Incremental Lateral, only the Incremental Lateral Charge and rate

adjustments pursuant to the General Terms and Conditions shall apply.

In addition, Transporter shall retain a quantity of gas for fuel and

losses associated with transportation utilizing the applicable

Incremental Lateral.