Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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

Fifth Revised Sheet No. 209C Fifth Revised Sheet No. 209C : Effective

Superseding: Third Revised Sheet No. 209C

Schedule LMS - MA

Load Management - Market Area (continued)

All points covered by Balancing Party's Balancing Agreement must

be listed as a Primary Delivery Point on at least one firm

transportation contract and the FS or IS Service Point used for

swing must be in the Transportation Path of the firm

transportation contract(s).

(ii) Daily Imbalances: A Balancing Party's Daily Imbalances (as

defined in Section 7(a)(i) above) at Delivery Point(s) up to

the MDWQ stated in the designated contract(s) shall be treated

as automatic storage injections or withdrawals under the

specified contract(s) and assessed the applicable charges under

the contract(s). Quantities taken in excess of Scheduled

Quantities shall be treated as storage withdrawals and

quantities taken below Scheduled Quantities shall be treated as

storage injections. Daily Imbalances shall be netted against

any offsetting scheduled withdrawals or injections for that

day. Daily Imbalances in excess of the MDWQ under the

applicable FS storage contract(s) will be treated as Authorized

Overruns pursuant to Section 7 of Transporter's FS Rate

Schedule and shall be assessed the applicable FS charges. If

more than one contract is being utilized by the Balancing

Party, the swing volumes will be allocated among the contracts

based on the ranking provided by the Balancing Party. If no

ranking is provided, the swing volumes will be prorated among

the contracts based on their respective MDWQs. Transporter

reserves the right to restrict variances in excess of the MDIQ,

and/or MDWQ, if, in Transporter's sole discretion, operational

conditions require such a restriction. In the event that

Transporter restricts variances in excess of the MDIQ and/or

MDWQ, Transporter shall post a notice on PASSKEY, as well as

provide fax notification to the affected Shipper's gas control.

If the storage contracting party is different from the Balancing

Party, all bills for storage activity, including balancing

pursuant to this Section 8, shall be sent to the storage

contracting party, who shall be liable for payment unless the

storage contracting party appoints Balancing Party to act as agent

and executes all necessary agreements pursuant to Transporter's

FERC Gas Tariff and directs Transporter to send all bills to

Balancing Party as agent.

Nothing herein shall exempt a Balancing Party from compliance with

a Critical Day Notice or an Operational Flow Order issued pursuant

to Article VIII of Transporter's General Terms and Conditions and

the OBA Transportation Service provisions, or