East Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 11/30/1998, Docket: RP99-109-000, Status: Effective

Second Revised Sheet No. 41 Second Revised Sheet No. 41 : Superseded

Superseding: Original Sheet No. 41

IT RATE SCHEDULE

INTERRUPTIBLE TRANSPORTATION SERVICE

(b) Transporter shall not deliver gas pursuant to this Rate Schedule to a

Delivery Point that is named as a Primary Delivery Point on an FT-GS

Agreement unless the FT-GS Shipper at that point has complied with the

provisions of Section 5 of Transporter's FT-GS Rate Schedule.

gas at any Delivery Point where (1) the total quantity of gas scheduled

for delivery on any day is less than that required for the accurate

measurement of quantities to be delivered or (2) the total quantity of

gas scheduled for delivery at such point is less than that required to

operate existing compression facilities necessary to deliver gas to

such point.

4. RATES AND CHARGES

4.1 Transportation Rates: The Transportation Rate is the maximum IT rate shown

on the effective Tariff Sheet No. 4, unless otherwise mutually agreed;

provided, however, Transporter has the right at any time and from time to

time to adjust the rate applicable to any transportation service upon notice

to Shipper to any level not less than the minimum nor more than the maximum

rates established for this Rate Schedule and set forth on the effective

Tariff Sheet No. 4. By mutual agreement between Transporter and Shipper,

discounts may be limited consistent with the provisions of Section 4.1 of the

pro forma service agreement applicable to this IT Rate Schedule.

In the event Transporter and Shipper agree to establish a rate that is not

subject to change and that is to be charged for the duration of the

transportation service, said rate will be set forth in the applicable IT

Agreement. Transporter shall file with the Commission the required reports

of any adjustment below the maximum rate(s) for service under this Rate

Schedule.

4.2 New Facilities: In addition to the charges pursuant to Section 4.1 of this

Rate Schedule, Transporter shall charge Shipper an amount to reimburse 100%

of the cost (including a gross up for the income tax effects of

reimbursement) of facilities constructed at the Shipper's request in order

to provide transportation service under this Rate Schedule. Further,

Transporter shall charge Shipper an amount to reimburse 100% of the cost

(including a gross-up for the income tax effects of reimbursement) of all

electronic custody transfer equipment, metering facilities, gravitometers,

calorimeters, flow controllers and other measurement or metering facilities.

The applicable new facilities charge shall be reflected on the IT Agreement.