East Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 08/01/1999, Docket: RP99-428-000, Status: Effective

Fifth Revised Sheet No. 54 Fifth Revised Sheet No. 54 : Superseded

Superseding: Fourth Revised Sheet No. 54

Rate Schedule LMS-MA

Load Management (Market Area) Service

(b) The Index Price shall be the Region Price for the Market Area set forth

in Tennessee's tariff pursuant to its Rate Schedule LMS-MA.

The Balancing Party shall pay the applicable percentage of the index price

only on the volumes within the corresponding imbalance range.

The amounts due hereunder shall be paid in accordance with Section 16 of

the General Terms and Conditions of Transporter's Tariff.

timing for reporting daily operational allocations after the gas has

flowed is within one business day after end of gas day. If the best

available data for reporting daily operational allocations is the

scheduled quantity, that quantity should be used for the daily operational

allocation. Therefore, upon request, Transporter will make available

within one business day following the production day the best information

it has concerning the total physical deliveries. Transporter will also

make available by electronic means the best information it has concerning

the scheduled and allocated deliveries at all delivery points by the end

of the third business day after each delivery day. This information will

include electronic gas measurement data at meters where such data is used

for billing purposes (Electronic Data). Transporter will designate the

points where Electronic Data is available. Balancing Parties will be

entitled to rely on the Electronic Data for purposes of correcting

imbalances during the month. Balancing Parties will not be entitled to

rely on the data from other delivery points for purposes of correcting

imbalances during the month and will be responsible for verifying the

actual deliveries at delivery points where no Electronic Data is

available. Imbalances will be cashed out on the basis of actual

deliveries and Scheduled Quantities; provided that the penalty level

associated with imbalances that are associated with Delivery Points where

Electronic Data is available will be based upon the lesser of (1) the

monthly imbalance reported by Transporter for the last day of the month

based upon the Electronic Data or (2) the monthly imbalance based upon

actual deliveries at such locations; provided however, if the monthly

imbalance reported by Transporter as of the 20th day of the calendar month

based upon Electronic Data is subsequently adjusted during the remainder

of the month and (1) such adjustments materially increase the level of the

imbalance and (2) the Balancing Party did not have adequate time to

correct the imbalance by adjusting nominations, or deliveries, then the

penalty level associated with imbalances at points where Electronic Data

is available will be based upon the lesser of (a) the imbalance reported

as of the 20th day of the calendar month plus the imbalance reported for

each subsequent day in the calendar month or (b) the