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

Fifth Revised Sheet No. 127 Fifth Revised Sheet No. 127 : Superseded

Superseding: Fourth Revised Sheet No. 127

GENERAL TERMS AND CONDITIONS (Continued)

14.9 Liability of Transporter: Transporter shall not be liable for any costs incurred

by any Shipper/Balancing Party in complying with an OFO. Transporter shall not be

responsible for any damages that result from any interruption in

Shipper's/Balancing Party's service that is a result of a Shipper's/Balancing

Party's failure to comply promptly and fully with an OFO, and the non-complying

Shipper/Balancing Party shall indemnify Transporter against any claims of

responsibility. However, Transporter shall use reasonable efforts to minimize any

such costs or damages.

14.10 Unilateral Action: In the event that (1) Shipper(s)/Balancing Party(s) does not

respond to an OFO, or (2) the actions taken thereunder are insufficient to correct

the system problem for which the OFO was issued, or (3) there is insufficient time

to carry out the procedures with respect to Action Alerts or Balancing Alerts,

Transporter may periodically take unilateral action, including the curtailment of

firm service, to maintain the operational integrity of Transporter's system (or any

portion thereof). For purposes of this section, the operational integrity of

Transporter's system shall encompass the integrity of the physical system and the

preservation of physical assets and their performance, the overall operating

performance of the entire physical system as an entity (or any portion thereof),

and the maintenance (on a reliable and operationally sound basis) of total system

deliverability and the quality of gas delivered.

15. SCHEDULING OF RECEIPTS AND DELIVERIES

15.1 Receipts and Deliveries.

All Receipt and Delivery Points must be covered by an OBA pursuant to Transporter's

LMS-MA or LMS-PA Rate Schedules. All imbalances occurring at a point shall be

allocated to the OBA covering that point.

15.2 Scheduling and Allocation

(a) GISB Standard 1.3.2 (Version 1.3) states: The standard nominations

timeline should be as follows: 11:30 A.M. for nominations leaving control

of the nominating party; 11:45 A.M. for receipt of nominations by the

transporter; noon for quick response; 3:30 P.M. for receipt of completed

confirmations by transporter from upstream and downstream connected

parties; 4:30 P.M. for receipt of scheduled quantities by shipper and point

operator (central clock time on the day prior to flow).

Initial Service: For purposes of scheduling commencement of transportation

service, no later than 11:30 A.M. CCT on the day prior to the beginning of

the day in which the transportation or storage service is requested to

commence, Shipper will send its nomination to Transporter via PASSKEY.

Transporter shall receive such complete nomination information by no later

than 11:45 A.M. CCT (12:00 P.M. CCT for an Electronic Data Interchange

quick response from Transporter) on the day prior to the day service

commences. The upstream/downstream connected party will provide

Transporter with final completed confirmation that Shipper's nominated

quantities will be received and delivered no later than 3:30 P.M. CCT on

the day prior to the commencement of the service.