Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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

Ninth Revised Sheet No. 206 Ninth Revised Sheet No. 206 : Effective

Superseding: Seventh Revised Sheet No. 206

Schedule LMS - MA

Load Management Service - Market Area (continued)

(b) Mid-month Activity

(i) Based upon the best information available, a Delivery Point Operator shall

take action to correct any imbalances occurring during the month by making

adjustments in nominations and gas flows. If a Delivery Point Operator

fails to take such corrective action, then Transporter may, upon one day's

notice, adjust Delivery Point Operator's scheduled receipts and deliveries

over the remainder of the calendar month in order to maintain a balance of

receipts, deliveries and nominations provided Transporter determines that

such action is necessary to maintain the operational integrity of the

system or to enable Transporter to meet its firm obligations to its other

Shippers.

(ii) Balancing Parties will be allowed to trade offsetting imbalances incurred

during the month with other Parties which are subject to Rate Schedules

LMS-MA and LMS-PA.

Mid-Month Trading: All imbalance trading occurring during the month that

the imbalance(s) occurred must be effected through the nomination of mid-

month make-up volumes to a predesignated paper transfer point for the

zone(s) covered by the Agreements. Any interzonal, inter-Pooling Area or

"receipt-to-delivery" imbalance trade may be effected by a Balancing

Party nominating transportation from a point or Market Area Pooling Area

covered on its Balancing or Rate Schedule SA Agreement to a point or

Pooling Area on another Agreement where the trade will occur. A

"receipt-to-delivery" imbalance trade is defined as any imbalance trade

between a party under this Rate Schedule and a party under Rate Schedule

LMS-PA whereby the party under this Rate Schedule is trading a "negative"

imbalance (as defined in Section 7(c)(iii) of this Rate Schedule) with a

"positive" imbalance (as defined in Section 7(c) of Rate Schedule LMS-PA)

incurred by a party under Rate Schedule LMS-PA.

End-of-Month Trading: Parties will also be allowed to trade offsetting

imbalances in the month following the month during which the imbalance

occurred; provided that the Party notifies Transporter of the identities

of the Parties agreeing to the trade, and the volumes to be traded, no

later than seventeen business days after the end of the month during

which the imbalances occurred. For interzonal, inter-Pooling Area or

receipt-to-delivery imbalance trades after the month during which the

imbalances occurred, the Parties agreeing to the trade must notify

Transporter of the party responsible for the transportation from point

to point, zone to zone or Market Area Pooling Area to Pooling Area. If

the Parties do not notify Transporter of the party responsible for

transportation, Transporter shall hold the Party who traded the

imbalance due Transporter responsible for the applicable transportation

charges. To facilitate end-of-month imbalance trading, Transporter will

provide for Parties to post their imbalances, and any information

relevant to the trading thereof, on PASSKEY.

For both mid-month and end-of-month trading, transportation charges for

interzonal or inter-Market Area Pooling Area trades solely under this

Rate Schedule will be based upon the greater of the zone-to-zone

commodity rates (including fuel and surcharges) associated with the

specific firm transportation contract used by the Parties or the zone-to-

zone commodity rate (including fuel and surcharges) associated with

Transporter's Rate Schedule FT-A. Transportation charges for interzonal

or inter-Pooling Area imbalance trades between a party under this Rate

Schedule and a party under Rate Schedule LMS-PA and for receipt-to-

delivery imbalance trades will be based upon the greater of the intrazone

or zone-to-zone commodity rate (including fuel and surcharges) associated

with the specific firm transportation contract used by the Parties or the

zone-to-zone commodity rate (including fuel and surcharges)associated

with Transporter's Rate Schedule FT-A.