East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 05/01/2000, Docket: RP00-245-000, Status: Effective

Sixth Revised Sheet No. 52A Sixth Revised Sheet No. 52A : Superseded

Superseding: Sub Fifth Revised Sheet No. 52A

Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)

[A+B] - C = Balancing Party's MAD

where A = the sum of the MDQs at all Primary Delivery Points for all firm

contracts covered by the Balancing Party's Balancing Agreements

(excluding any firm rights from Transporter's LNG facility at

Kingsport, Tennessee and/or from Primary Receipt Points on

Transporter's system at which Transporter does not have swing

capability)

B = any other quantities scheduled by Transporter at a point covered by

the Balancing Party's Balancing Agreement (including any firm

quantities scheduled for delivery from Transporter's LNG facility at

Kingsport, Tennessee and/or from Primary Receipt Points on

Transporter's system at which Transporter does not have swing

capability)

C = quantities scheduled at Secondary Delivery Points under firm

contracts that name a point covered by the Balancing Party's

Balancing Agreement as a Primary Delivery Point (excluding any firm

rights from Transporter's LNG facility at Kingsport, Tennessee

and/or from Primary Receipt Points on Transporter's system at which

Transporter does not have swing capability)

Transporter shall post on PASSKEY the sum of the MDQs at all Primary Delivery

Points for all firm contracts covered by each Balancing Party's Balancing Agreement

(excluding any firm rights from Transporter's LNG facility at Kingsport, Tennessee

and/or from Primary Receipt Points on Transporter's system at which Transporter

does not have swing capability).

7.2 Balancing Party shall not be subject to Unauthorized Overrun Charges under this

Section 7 where Balancing Party is able to demonstrate that it is prevented from

compliance with this Section 7 due to an event excusing performance as defined in

Section 24 of Transporter's General Terms and Conditions. Balancing Party shall

notify Transporter immediately if it believes that it is excused from compliance,

and shall provide Transporter with documentation sufficient to support its basis

for non-compliance.

7.3 In addition to the remedy set forth in Section 7.1 above, in the event a Balancing

Party takes gas in excess of the MAD, and Transporter believes it is necessary to

take actions (i.e., buying or selling gas, etc.) to maintain system integrity or to

prevent interrupting firm service, Transporter shall have the right, but not the

obligation, to take such remedial actions as it deems necessary. If Transporter

takes these actions, it shall be made whole by the Balancing Party that failed to

observe the MAD for all costs that Transporter incurs.

7.4 In addition to Balancing Party's rights set forth in Section 7.2 above, Balancing

Party may elect the Storage Delivery Option ("SDO"). SDO enables Balancing Party

to resolve quantities taken in excess of Balancing Party's MAD TQ by allocating

those excess quantities to Balancing Party's storage account up to the lesser of

Balancing Party's daily transportation MDQ on a designated FT-A transportation

agreement(s) or Balancing Party's storage MDWQ on a designated storage

agreement(s). If Balancing Party nominates and Transporter schedules any volumes

on the designated FT-A Agreement(s) and/or designated storage agreement(s),

Balancing Party's daily transportation MDQ and/or storage MDWQ available for SDO

shall be reduced accordingly to reflect those scheduled volumes. Under SDO, once

Transporter has allocated quantities to Balancing Party's storage account up to the

lesser of Balancing Party's daily transportation MDQ, storage MDWQ or storage

balance, any excess quantities will be subject to Unauthorized Overrun Charges.

SDO will be available at all delivery points covered by an OBA, and for receipts

from Transporter's LNG facilities and/or Third Party Provider ("TPP") storage

points which are attached to Transporter's system and are covered by a Balancing

Agreement under Rate Schedule LMS-PA and a TPP amendment.