Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

 Contents / Previous / Next / Main Tariff Index

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

Fourth Revised Sheet No. 209E Fourth Revised Sheet No. 209E : Effective

Superseding: Substitute Second Revised Sheet No. 209E

Schedule LMS - MA

Load Management - Market Area (continued)

the TPP Shipper must provide the respective MDWQs, or their

equivalent, of the TPP Service Point(s) for purposes of

allocating the Daily Imbalances among the contracts. The TPP

Service Point must be in the Transportation Path of a Firm

Transportation Agreement associated with Balancing Party's

delivery points.

(ii) Daily Imbalances: For purposes of balancing hereunder, a TPP

Shipper's Daily Imbalance (as defined in Section 7(a)(i) above)

at Delivery Point(s) shall be treated by Transporter as

scheduled transportation. Quantities taken in excess of the

scheduled deliveries at points covered by the TPP Shipper's

Balancing Agreement shall be treated as receipts at the TPP

Service Point and quantities taken below the scheduled

deliveries at points covered by the TPP Shipper's Balancing

Agreement shall be treated as deliveries at the TPP Service

Point. TPP Shipper's liability for transportation charges for

swings using a TPP Service Point shall be limited to payment of

the Transportation Component pursuant to subsection (d) of this

Section 8. Nothing herein shall exempt a TPP Shipper from

compliance with a Critical Day Notice or an Operational Flow

Order issued pursuant to Article VIII of the General Terms &

Conditions of Transporter's FERC Gas Tariff or with OBA

Transportation Service provisions, or from penalties resulting

from noncompliance.

(d) Transportation Component: Balancing Party shall be assessed or credited

a transportation component on all Daily Imbalances. When Balancing

Party takes more gas than is scheduled, Transporter shall assess a

commodity rate under its FT-A Rate Schedule for each dekatherm by which

Balancing Party exceeds its scheduled quantity. The commodity rate

shall equal the transportation rate, including fuel and all applicable

surcharges, from the zone of the Storage Contract or TPP Service Point

to the zone where the Balancing Party's delivery point(s) are located.

When Balancing Party takes less gas than is scheduled, Transporter shall

credit Balancing Party an amount using the commodity rate under its FT-A

Rate Schedule. The commodity rate shall equal the difference between

the rate for transportation from Transporter's Zone 1 to the Zone of the

OBA Delivery Point(s) and Zone 1 to the Storage Contract or TPP Service

Point, including fuel and all applicable surcharges. However, credits

under this section shall not exceed, on a unit-for-unit basis, the

average commodity transportation rate paid for deliveries to the points

covered by Balancing Party's Balancing Agreement during the applicable

month. Balancing Party may elect to resolve the fuel portion of the

Transportation Component through a volumetric adjustment to the Storage

Contract or TPP storage balance. Applicable fuel charges shall be

treated as automatic storage withdrawals and applicable fuel credits

shall be treated as automatic storage injections.