East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/15/2000, Docket: RP00-556-000, Status: Effective

Sixth Revised Sheet No. 61 Sixth Revised Sheet No. 61 : Superseded

Superseding: Fifth Revised Sheet No. 61

Rate Schedule LMS-PA

Load Management (Pooling Area) Service (Continued)

4.2 A Balancing Party may be subject to an Unauthorized Overrun Charge

for quantities delivered above the Daily Limit as set forth in

Section 5.

4.3 Based upon the best information available, a Balancing Party shall

take action to correct any imbalances occurring during the month

by making adjustments in nominations or receipts. If Balancing

Party fails to take such corrective action, then Transporter may,

upon 48 hours notice, adjust Balancing Party's scheduled receipts

over the remainder of the calendar month in order to maintain a

balance of receipts and nominations.

5. UNAUTHORIZED OVERRUN

5.1 On any day on which Transporter has issued an Operational Flow

Order ("OFO") affecting Balancing Party's point pursuant to

Section 14 of Transporter's General Terms and Conditions, and

Balancing Party delivers gas in excess of the Daily Limit

applicable to the receipt point, such Balancing Party shall be

subject to an Unauthorized Overrun Charge as set forth in Section

14.8 of Transporter's General Terms and Conditions for each dth of

excess quantities delivered beyond a two percent allowable

variation. The Daily Limit shall be stated in the OFO.

5.2 In addition to the remedy set forth in 5.1 above, in the event

Balancing Party delivers gas in excess of the Daily Limit

applicable to the receipt point 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 Daily Limit for all costs that Transporter

incurs.

6. IMBALANCE TRADING

Balancing Parties will be allowed to trade imbalances occurring during

the month. All mid-month imbalance trading must be effectuated through

the nomination of mid-month make-up volumes. To facilitate imbalance

trading, Transporter will provide for posting of Balancing Party's

imbalances on LINK®. Balancing Parties will also be allowed to trade

offsetting end-of-month imbalances in the month following the month

during which the imbalance occurred; provided that the Balancing Party

notifies Transporter of the identities of the Balancing Parties agreeing

to the trade, and the volumes to be traded, no later than ten business

days after the end of the month during which the imbalances occurred.