Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 05/01/2007, Docket: RP07-375-000, Status: Effective

Seventh Revised Sheet No. 211 Seventh Revised Sheet No. 211 : Effective

Superseding: Sixth Revised Sheet No. 211

Rate Schedule LMS - PA

Load Management Service - Pooling Area (continued)

(b) The terms, conditions and charges of this Rate Schedule shall not apply

to points covered by a Pipeline Balancing Agreement executed by a

pipeline providing transportation services to and/or from a point of

interconnection.

(c) The daily balancing and monthly cash out procedures shall also apply to

receipts scheduled under a transportation agreement that is not covered

by a Balancing Agreement.

3. Allocations of Receipts

The quantities of gas received by Transporter at any receipt point shall be

allocated pursuant to the procedures set forth in Article III, Section 3 of

the General Terms and Conditions of Transporter's FERC Gas Tariff.

4. Scheduling and Confirmation By Operator

An operator will confirm the nominations of the quantities to be scheduled at

the receipt point. At receipt points governed by producer/aggregator level

Balancing Agreements, the operator will confirm the producer level PDA for the

point. The operator and producer will confirm the nominations of the

quantities to be scheduled at the point. The operator and each producer will

notify the affected Shipper, operator and/or producer and Transporter, via

PASSKEY, within the time frame specified in the General Terms and Conditions

of any change in the nomination by the Shipper to confirm nominations

scheduled for delivery.

5. Daily Imbalances Charges

(a) The Daily Imbalance for a Balancing Party or Shipper ("Party") shall be

the difference between the total net quantities scheduled for receipt at

the point(s) as set forth in the Agreement subject to this Rate Schedule

("Agreement") and the actual quantities of gas taken by the Party at

such point(s) for each day.

(b) Each day, Transporter shall provide on PASSKEY a continuous notice of

the net pipeline position of Transporter's pipeline system. Beginning

at 12 PM CCT each gas day, Transporter shall monitor the net pipeline

position and provide notice via e-mail to customers the first time the

net pipeline position is greater than plus or minus 4.5%. Transporter

shall determine the net pipeline position by dividing the sum of the

total positive or negative cumulative imbalances at all points covered

by this Rate Schedule and the total positive or negative cumulative

imbalances at all points covered under Rate Schedule LMS-MA by the sum

of the total scheduled quantities at all points covered under this Rate

Schedule and the total scheduled quantities at all points covered under

Rate Schedule LMS-MA. The resulting % imbalance is the net pipeline

position.

(c) On a day that the net pipeline position exceeds plus or minus 5%, any

Party under this Rate Schedule that 1) has a Daily Imbalance that

exceeds the greater of 10% of scheduled quantities or 1,000 Dth but less

than or equal to 20% of that Party's scheduled quantities and 2) the

Daily Imbalance is in the same direction as the net pipeline position,

shall be assessed a per dekatherm Daily Imbalance Charge equal to two

times the currently effective maximum rate under Transporter's Rate

Schedule PAL. The Daily Imbalance Charge under this Section 5(c) shall

apply only to those quantities of the Daily Imbalance that exceed the

greater of 10% of scheduled quantities or 1,000 Dth but are less than or

equal to 20% of the Party's scheduled quantities for that day.