Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 10/01/1998, Docket: RP98-378-000, Status: Effective

First Revised Sheet No. 233 First Revised Sheet No. 233 : Effective

Superseding: Original Sheet No. 233

RATE SCHEDULE FT-BH

FIRM TRANSPORTATION BACKHAUL SERVICE (continued)

4.7 Pressures: Shipper shall deliver gas to Transporter at the pressure required

from time to time to enable the gas to enter Transporter's facilities at the

Receipt Point(s). Transporter shall deliver gas to Shipper or Shipper's

designee at Transporter's line pressure existing at the Delivery Point(s).

4.8 Uniform Quantities: As nearly as practicable, Shipper shall deliver and

receive gas in uniform hourly quantities during any day.

5. RATES AND CHARGES

5.1 Applicable Rates: The applicable rates for service under the FT-BH Rate

Schedule are the applicable maximum FT-BH rates shown in the Summary of Rates

and Charges in Transporter's effective FERC Gas Tariff; provided, however,

upon notice to Shipper, Transporter has the right at any time and from time

to time to adjust the rates applicable to any Transportation Service

Agreement to any level not less than the minimum or more than the maximum

rates established for this Rate Schedule and set forth in the Summary of

Rates and Charges of Transporter's effective FERC Gas Tariff. In the event

that Transporter makes such an adjustment, such adjusted rates (a) shall

apply solely to service at the receipt and/or delivery points agreed upon by

Transporter, and (b) shall be applicable for the period agreed upon by

Transporter. By mutual agreement between Transporter and Shipper, discounts

may be limited consistent with the provisions of Section 6.1 of the pro forma

service agreement applicable to this Rate Schedule FT-BH.

In the event the Shipper has designated multiple Primary Receipt and/or

Primary Delivery points, a Weighted Average Reservation Rate shall be applied

to the total maximum daily transportation quantity specified in the

Transportation Service Agreement; provided, however, that the addition of

points to a Transportation Service Agreement shall not reduce the reservation

charge otherwise applicable to the Transportation Service Agreement. The

Weighted Average Reservation Rate shall be determined as follows: (1) for

each Primary Receipt and Primary Delivery point combination available under

the Transportation Service Agreement the applicable Reservation Rate shall

be multiplied by the maximum daily transportation quantity applicable to that

receipt and delivery point combination; (2) the sum of the amounts derived

for each receipt and delivery point combination shall be divided by the total

maximum daily transportation quantity specified in the Transportation Service

Agreement. The sum of the maximum daily transportation quantities applicable

to each receipt and delivery point combination shall be equal to the total

maximum daily transportation quantity under the Transportation Service

Agreement. In the event Transporter and Shipper agree to establish a fixed

rate to be charged for the duration of the firm Transportation Service

Agreement, said rate will be set forth in the Transportation Service

Agreement. Transporter shall file with the Commission the required reports

of any adjustment below the maximum Commodity and/or Reservation Rates for

service under this Rate Schedule.

5.2 Facilities Charge: In addition to the charges pursuant to Section 5.1 of

this Rate Schedule, Transporter may charge Shipper an amount to reflect the

cost of Tap Facilities or Tap and Connecting Facilities as provided in

Article XVII of the General Terms and Conditions of Transporter's FERC Gas

Tariff. Any applicable Facilities Charge may be stated in the Transportation

Service Agreement.

5.3 Incidental Charges: In addition to the charges pursuant to Sections 5.1 and

5.2 of this Rate Schedule, Transporter shall charge Shipper an amount to

recoup any filing or similar fees which Transporter incurs in rendering

service hereunder, which have not been previously paid by Shipper.

Transporter shall not use the amounts so collected either as revenues or

costs in establishing its general system rates. The applicable Incidental

Charges shall be stated in the Transportation Service Agreement.