Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 12/01/1997, Docket: RP96-268-004, Status: Effective

Third Revised Sheet No. 209H Third Revised Sheet No. 209H : Effective

Superseding: Second Revised Sheet No. 209H

Schedule LMS - MA

Load Management - Market Area (continued)

(ii) Transporter's Service Package numbers for the Storage Contract

Holder's FS contract(s) with Transporter or the applicable contract

number(s) for the contract(s) with the TPP; and

(iii) the Service Package numbers for the Storage Contract Holder's firm

transportation contract(s) with Transporter that list an FS Service

Point or TPP Service Point as a Primary Receipt Point and the

Pipeline Interconnect as a Primary Delivery Point; and

(iv) the Service Package number for Pipeline Balancing Party's Balancing

Agreement with Transporter.

(e) Daily Variances: Commencing on the effective date of the DSS Option and

subject to the restrictions set forth in subsection (g) below, the Daily

Variances at the Downstream Delivery Point(s), as communicated to

Transporter by the Pipeline Balancing Party, shall be treated as automatic

storage injections or withdrawals under the Storage Contract Holder's FS

contract(s). Quantities taken in excess of scheduled quantities at the

Downstream Delivery Point(s) shall be treated by Transporter as scheduled

storage withdrawals and quantities taken below scheduled quantities at the

Downstream Delivery Point(s) on the Pipeline Balancing Party shall be

treated as scheduled storage injections. Charges associated with Daily

Variances shall be netted against the applicable charges assessed against

the FS Contract Holder for any offsetting scheduled withdrawals or

injections for that day.

For Storage Contract Holders who are TPP Shippers, the Daily Variances at

the Downstream Delivery Point(s), as communicated by Transporter to

Balancing Party, shall be treated as scheduled transportation. Quantities

taken in excess of scheduled quantities at the Downstream Delivery

Point(s) shall be treated by Transporter as receipts at the TPP Service

Point and quantities taken below the scheduled quantities at the

Downstream Delivery Point(s) shall be treated as deliveries at the TPP

Service Point. Transportation charges for swings using a TPP Service

Point shall be limited to payment of the Transportation Component pursuant

to Section 8(d) of this Rate Schedule.

If two FS Contracts, two TPP Service Points or a combination of an FS

Contract and a TPP Service Point are being utilized by the Storage

Contract Holder, the Daily Variance will be prorated between the two

contracts based on their respective MDWQs.

(f) Applicable Charges: The Storage Contract Holder shall be liable for all

applicable injection, withdrawal and firm transportation charges just as

if the Storage Contract Holder had nominated the storage and

transportation to match the actual flow. Except as provided in subsection

(g), in the event that actual flow exceeds a Storage Contract Holder's

contractual limitation, authorized overrun charges shall apply.

(g) Swing Limitation: All or any portion of a Daily Variance at a Downstream

Delivery Point will not be treated as an automatic storage injection or

withdrawal or as scheduled transportation to the extent that on any day,

Transporter has restricted authorized overrun transportation and the sum

of (i) the quantity of gas scheduled under the Storage Contract Holder's

firm transportation contract specified pursuant to subsection (d) of this

Section 9, and (ii) the Daily Variance, would exceed the TQ under the firm

transportation contract specified pursuant to subsection (d) of this

Section 9. The portion of the Daily Variance that exceeds this limit

shall be accounted for as an imbalance at the Pipeline Interconnect and