Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 04/01/1996, Docket: RP95-396-007, Status: Effective

First Revised Sheet No. 215B First Revised Sheet No. 215B : Effective

Rate Schedule LMS - PA

Load Management Service - Pooling Area (continued)

(iii) For all Parties whose % monthly imbalance is greater than

5% (as calculated according to Section 7(a) or (b) of this

Rate Schedule) and greater than 1,000 Dth, the actual

negative imbalance volumes shall be "cashed out" according

to the following formula:

Imbalance Tier Price

0 - 5% 100% of HP

> 5% - 10% 115% of HP

> 10% - 15% 130% of HP

> 15% - 20% 140% of HP

> 20% 150% of HP

For purposes of determining the tier at which an imbalance will

be cashed out, the price will apply only to volumes within a

tier. For example, if there is a 7% imbalance, volumes that

make up the first 5% of the imbalance are priced at 100% of the

HP. Volumes making up the remaining 2% of the imbalance are

priced at 115% of the HP.

(iv) For all Parties whose % monthly imbalance is greater than 5% (as

calculated according to Section 7(a) or (b) of this Rate

Schedule) and greater than 1,000 Dth, the actual positive

imbalance volumes shall be "cashed out" according to the

following formula.

Imbalance Tier Price

0 - 5% 100% of LP

> 5% - 10% 85% of LP

> 10% - 15% 70% of LP

> 15% - 20% 60% of LP

> 20% 50% of LP

For purposes of determining the tier at which an imbalance will

be cashed out, the price will apply only to volumes within a

tier. For example, if there is a 7% imbalance, volumes that

make up the first 5% of the imbalance are priced at 100% of the

LP. Volumes making up the remaining 2% of the imbalance are

priced at 85% of the LP.