Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 11/03/2001, Docket: RP02- 17-000, Status: Effective

First Revised Sheet No. 244 First Revised Sheet No. 244 : Effective

RATE SCHEDULE FT-IL

FIRM TRANSPORTATION INCREMENTAL LATERAL SERVICE (continued)

5. RATES AND CHARGES

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

Schedule are the applicable maximum FT-IL 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 under this Rate Schedule 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-

IL.

In the event Transporter and Shipper agree to establish a fixed rate to

be charged for the duration of the FT-IL Service Agreement, said rate

will be set forth in the FT-IL Service Agreement. Transporter shall

post on its interactive Internet website under Transactional Postings

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

service under this Rate Schedule.

5.2 Facilities Charge: In addition to the other 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 FT-IL 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 incremental or recourse rates. The applicable

Incidental Charges shall be stated in the FT-IL Service Agreement.