East Tennessee Natural Gas Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 62 Third Revised Sheet No. 62 : Superseded

Superseding: Second Revised Sheet No. 62

Rate Schedule LMS-PA

Load Management (Pooling Area) Service (Continued)

7. MONTHLY IMBALANCES

7.1 The Balancing Party's monthly imbalance shall be the net total of

daily variances from all points covered by the OBA adjusted for

make-up quantities and imbalance trading transactions. Unless

Transporter and the Balancing Party mutually agree to correct the

imbalance in kind on a nondiscriminatory basis, each month

Transporter and the Balancing Party shall "cash out" any imbalance

between Scheduled Quantities and actual receipts. To determine

the % monthly imbalance, Transporter shall divide the lesser of

the monthly imbalance based on Operational Data or the actual

monthly imbalance by the total scheduled quantities for all days

of the month for all points covered by the Balancing Agreement,

then multiply by 100.

7.2 (a) If the monthly imbalance is due to an excess of actual

receipts relative to scheduled quantities, then the monthly

imbalance shall be considered a "positive" imbalance and

Balancing Party/Shipper shall sell to Transporter, and

Transporter shall buy from the Balancing Party/Shipper, in

accordance with the formula listed in Section 7.2(a) of this

Rate Schedule. If the monthly imbalance is due to a

deficiency in actual receipts relative to scheduled

quantities, then the monthly imbalance shall be considered a

"negative" imbalance and Transporter shall sell to the

Balancing Party/Shipper, and Balancing Party/Shipper shall

buy from Transporter, in accordance with the formula listed

in Section 7.2(a)(ii).

The amounts due hereunder shall be paid in accordance with

Section 16 of the General Terms and Conditions of

Transporter's FERC Gas Tariff.