Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 10/01/2009, Docket: RP09-998-000, Status: Effective

Fourth Revised Sheet No. 240 Fourth Revised Sheet No. 240

Superseding: Third Revised Sheet No. 240

RATE SCHEDULE PAL

PARK AND LOAN SERVICES (continued)

7. PENALTIES

7.1 Park Service:

(a) In the event any of the following occurs, parked quantities shall

become the property of Transporter at no cost to Transporter, free

and clear of any adverse claims:

(i) Transporter's prevailing operations require Transporter to

notify Shipper that deliveries of parked quantities must be

suspended or be reduced, and Shipper fails to comply with

such notification; and/or

(ii) Transporter's prevailing operations require Transporter to

notify Shipper that all or part of Shipper's parked

quantities must be removed, and Shipper fails to comply

within the specified time frame; and/or

(iii) the PAL account reflects a positive balance at the

termination date of the executed PAL Agreement.

(b) If, pursuant to Section 7.1(a)(i), Transporter notifies Shipper that

deliveries of parked quantities must be suspended or be reduced,

only those quantities parked in violation of the notification shall

become the property of Transporter at no cost to Transporter, free

and clear of any adverse claims.

(c) In the event that a PAL account for Park Service reflects a negative

balance at the termination date of the executed PAL Agreement, those

overdrawn quantities shall be sold to Shipper at 150% of the highest

weekly spot price of the region of the PT.

(d) In the event any of the occurrences in Sections 7.1(a), 7.1(b)

and/or 7.1(c) of this Rate Schedule are impeded to the extent

Shipper nominates in accordance with the terms of its contract

pursuant to such notification or to remedy a negative balance at

the termination date and Transporter is unable to schedule

Shipper's nomination, the specified time frame will be extended

accordingly.

(e) Notwithstanding Sections 7.1(a) and (c), in the event that on the

termination date of the executed PAL Agreement the PAL account for

Park Service reflects a positive or negative balance of one hundred

(100) dekatherms or less, and such balance is not due to

Transporter's inability to schedule Shipper's nominated quantities,

Shipper shall have five (5) business days ("Grace Period") to

resolve such balance. In the event that Transporter is unable to

schedule any of Shipper's nominated quantities during the Grace

Period, Transporter and Shipper may mutually agree to extend the

Grace Period for the amount of time that Transporter was unable to

schedule the Park Service. If, at the end of the Grace Period,

Shipper has a remaining balance, Section 7.1(a) or (c), whichever

is applicable, shall control.