Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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

Second Revised Sheet No. 235 Second Revised Sheet No. 235 : Effective

Superseding: Substitute Original Sheet No. 235

RATE SCHEDULE FT-BH

FIRM TRANSPORTATION BACKHAUL SERVICE (continued)

6. MONTHLY BILL

The Monthly Bill for deliveries shall be equal to:

(a) Reservation Charge: A reservation charge equal to the product of the

applicable Reservation Rate (or Weighted Reservation Rate) shown in the

Summary of Rates and Charges in Transporter's effective FERC Gas Tariff

multiplied by the Transportation Quantity specified in the Transportation

Service Agreement; and

(b) Commodity Charge: The applicable Commodity Rate set forth in the Summary

of Rates and Charges in Transporter's effective FERC Gas Tariff multiplied

by the quantity of gas scheduled in the month; and

(c) Other Charges: If applicable, any Facilities Charge, any Incidental

Charges, any Authorized Overrun Charges, any Losses Charge, and any

applicable surcharges as shown in the Summary of Rates and Charges and any

cash out charges resulting from imbalances incurred.

7. FAILURE OF TRANSPORTER

If Transporter fails to tender for delivery during any one or more days the

quantity of natural gas which Shipper has scheduled for delivery, taking into

consideration an allowable variation of 2%, up to the maximum quantity which

Transporter is obligated by the Transportation Service Agreement to deliver to

Shipper, then the demand charge as otherwise computed hereunder shall be reduced

by an amount equal to the applicable Daily Demand Rate per dth times the

difference between the quantity of natural gas tendered for delivery during said

day or days and the quantity of natural gas scheduled by Shipper for delivery at

Primary Delivery Points during said day or days; provided that if Transporter's

failure to perform is due to a force majeure event described in Article X of the

General Terms and Conditions of Transporter's effective FERC Gas Tariff,

Transporter shall not be obligated to reduce Shipper's demand charges, in the

manner described above, for failure to tender delivery at Shipper's primary

delivery point(s).

8. EXTENSION OF TRANSPORTATION SERVICE AGREEMENT

Subject to the availability of this Rate Schedule, Transporter shall provide

notice to Shipper under a long term firm service agreement thirteen (13) months

prior to the expiration of the Transportation Service Agreement's primary term.

Subject to the availability of capacity and at Shipper's election, the

Transporter shall require Shipper to exercise its right-of-first refusal by

making the capacity under such agreement available in accord with the procedures

outlined in Article III, Section 10.4 of the General Terms and Conditions of

Transporter's effective FERC Gas Tariff.

9. GENERAL TERMS AND CONDITIONS

Shipper shall provide Transporter with such information as is needed to meet the

requirements placed on Transporter pursuant to 18 CFR Part 284. The General

Terms and Conditions specified in Volume 1 of Transporter's effective FERC Gas

Tariff are incorporated as part of this Rate Schedule.