Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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

Tenth Revised Sheet No. 212 Tenth Revised Sheet No. 212 : Effective

Superseding: Eighth Revised Sheet No. 212

Rate Schedule LMS - PA

Load Management Service - Pooling Area (continued)

6. Midmonth Activity

(a) Based upon the best information available, all parties subject to this Rate

Schedule shall take action to correct any imbalances occurring during the month

by making adjustments in nominations, receipts or deliveries. If any such party

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

notice, adjust such party'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 either

to maintain the operational integrity of the system or to enable Transporter to

meet its firm obligations to other customers on its system.

(b) Balancing Parties under this Rate Schedule and Shippers whose transportation

agreements are not covered by a Balancing Agreement will be allowed to trade

offsetting imbalances incurred during the month with other Parties under Rate

Schedules LMS-PA and LMS-MA.

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 within the pooling area

applicable to the Agreements. Any interzonal, inter-Pooling Area or any

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

nominating transportation from a point covered on its Balancing Agreement to a

point 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-MA whereby the party under this Rate

Schedule is trading a "positive" imbalance (as defined in Section 7(c) of this

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

Rate Schedule LMS-MA) incurred by a party under Rate Schedule LMS-MA.

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 Pooling Area to Pooling Area. If the Parties do

not notify Transporter of the party responsible for the 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 mid-month and end-of-month trading, transportation charges for interzonal or

inter-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 rates (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-MA and for receipt-to-delivery imbalance trades

will be based upon the greater of the intrazone or 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 rates (including fuel

and surcharges) associated with Transporter's Rate Schedule FT-A. For imbalance

trades on an Incremental Lateral as defined in Article XVIII, Section 2 of the

General Terms and Conditions, the transportation charges as determined above

will be based on the point of interconnection between the Incremental Lateral

and Transporter's mainline to determine the zone for the lateral imbalance. In

addition, the transportation charges will be increased by the applicable maximum

commodity rate (including fuel and surcharges) under Rate Schedule FT-IL.