East Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 07/01/1996, Docket: RP96-248-000, Status: Effective

First Revised Sheet No. 64 First Revised Sheet No. 64 : Superseded

Superseding: Sub Original Sheet No. 64

Rate Schedule LMS-PA

Load Management (Pooling Area) Service

based upon actual deliveries at such points to the extent the Balancing

Party documents the situation. Notwithstanding anything to the

contrary, if the Electronic Data at any point is inaccurate, through

no fault of Transporter, but rather as the result of the action or

inaction of third parties, then the penalty level associated with

monthly imbalances occurring at such points will be based upon actual

deliveries.

(d) Limitation on Penalties - Any imbalances caused by an event of force

majeure as set forth in Article 24 of the General Terms and Conditions

of Transporter's Tariff or caused by Transporter's actions (1) will not

be included in the calculation of the total monthly imbalance for

purposes of determining the appropriate cash-out level and (2) will be

cashed out at the 0-5% tolerance level, as set forth in 6.2(a) above.

(e) Operational Integrity - Nothing in this Section 6 shall limit

Transporter's right to take action as may be required to adjust

receipts and deliveries of gas in order to alleviate conditions that

threaten the integrity of its system.

7. DISPOSITION OF CHARGES

At the conclusion of each annual period, Transporter will determine the net cashout

activity. In the event that charges collected by Transporter hereunder exceed the

actual cost of providing service under this Rate Schedule, Transporter shall credit

such excess revenues to all Balancing Parties. Credits shall be applied based on

volumes shipped during the past year. Any credits due hereunder shall be made

within 90 days following each anniversary of the Implementation Date. To the

extent that the cashout activity in any annual period results in a negative

balance, such balance will be carried forward and applied to the next annual

determination of cashout activity. At the end of each annual period, Transporter

will file a report and refund plan with the Commission.

8. GENERAL TERMS AND CONDITIONS

8.1 Shipper shall provide Transporter with such information as is needed to meet

the requirements placed on Transporter by regulation, rule, and/or order by

any duly authorized agency. Furthermore, any terms or conditions not

specified in this Rate Schedule shall be determined consistent with the

General Terms and Conditions of Transporter's Tariff, which are incorporated

into this Rate Schedule.

8.2 In the event of a conflict between the provisions of this Rate Schedule and

Transporter's General Terms and Conditions, the provisions of Transporter's

General Terms and Conditions shall govern.