Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 10/01/2003, Docket: RP00-477-005, Status: Effective

Tenth Revised Sheet No. 204 Tenth Revised Sheet No. 204 : Effective

Superseding: Seventh Revised Sheet No. 204

Schedule LMS - MA

Load Management Service - Market Area (continued)

3. Scheduling and Confirmation By Operator

The Delivery Point Operator will confirm the nominations of the quantities to

be delivered at delivery points. The Delivery Point Operator will notify

Transporter and the affected Shipper, via PASSKEY, within the time specified

for confirmations in the General Terms and Conditions of Transporter's FERC Gas

Tariff of any change in a nomination by Shipper to scheduled quantities.

4. OBA Transportation Service

On any day, a Balancing Party may take gas in excess of its scheduled

transportation quantities up to the Balancing Party's Daily Swing Quantity

("DSQ"). The Balancing Party's DSQ is the sum of the unscheduled capacity on

the transportation contracts with primary firm capacity at the delivery points

covered by the Balancing Party's OBA. At meters with no active electric

telemetry equipment that provides for change in gas flows, to the extent the

Balancing Party takes unscheduled gas in excess of its DSQ, such quantities

shall be assessed a charge equal to (1) the highest authorized overrun rate for

transportation from Zone 1 to the zone where the Delivery Point is located for

service under the transportation contracts with primary firm capacity at the

delivery points covered by the Balancing Party's OBA, multiplied by the

unscheduled volumes taken in excess of the DSQ, less (2) the Transportation

Component assessed on unscheduled quantities in excess of the DSQ pursuant to

Section 7(c)(iii) of this Rate Schedule. If there is no primary firm capacity

at the points covered by the Balancing Party's OBA, unscheduled quantities in

excess of the Balancing Party's DSQ will be assessed a charge equal to (1) the

authorized overrun rate under Rate Schedule FT-A for transportation from Zone 1

to the zone where the Delivery Point is located multiplied by the unscheduled

volumes taken in excess of the DSQ, less (2) the Transportation Component

assessed on unscheduled quantities in excess of the DSQ pursuant to Section

7(c)(iii) of the Rate Schedule. Transporter reserves the right to suspend

service under this provision in the event of issuance of an Operational Flow

Order pursuant to Article VIII of the General Terms and Conditions of

Transporter's FERC Gas Tariff.

5. Imbalance Resolution Option Election

Balancing Party shall be subject to the "Cash Out Option" established in Section

7 of this Rate Schedule unless Balancing Party elects instead the "Storage Swing

Option" established in Section 8 of this Rate Schedule. Balancing Party must

make such election (or may change an election currently in effect) by notifying

Transporter 2 business days prior to the election going into effect. Elections

shall continue on a day to day basis unless changed by a Balancing Party.