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

Second Revised Sheet No. 132 Second Revised Sheet No. 132 : Superseded

Superseding: First Revised Sheet No. 132

GENERAL TERMS AND CONDITIONS (Continued)

(b) Outstanding Imbalances: Shippers shall remain responsible

for imbalances accrued before Implementation Date. Within

thirty days of the Implementation Date, Shipper shall be

required to "cash out" any outstanding imbalances effective

on the day before the Implementation Date in accordance with

the procedures established in Transporter's Tariff that was

in effect on the day before the Implementation Date unless

the parties mutually agree otherwise.

(c) Balancing at Contract Termination: Following the

termination of the service agreement, Shipper shall be

required to "cash out" any remaining excess or deficiency in

receipts and deliveries in accordance with the procedures

established in the LMS Rate Schedules, unless the parties

mutually agree otherwise.

15.8 Unauthorized Delivery Imbalance Charge: Unauthorized deliveries

are deliveries of gas for transportation made to Transporter at

the Receipt Point(s) prior to execution of a Balancing Agreement

or submission of customer nomination information via PASSKEY as

provided in Section 15.2 above. For any unauthorized deliveries,

Transporter shall assess a charge equal to three times the daily

demand rate pursuant to Transporter's FT-A Rate Schedule.

Transporter shall have the right to retain unauthorized deliveries

at Receipt Point(s) that have not been cured in accordance with

the above after 30 days notice to the responsible party.

16. INVOICING AND PAYMENTS

16.1 Monthly invoicing date: Transporter shall prepare invoices

(including imbalance statements) on or before the 9th business day

of each month following the month of delivery. Invoices may be

rendered by mail or electronic communication.

16.2 Right of examination: Both Transporter and Shipper shall have the

right to examine at any reasonable time the applicable books and

records (or portions thereof) and charts of the other to the

extent necessary to verify the accuracy of any statement made

under or pursuant to the provisions of the gas service agreement.

Upon receipt of a request, the party will either send the

information relevant to the request to the other party or will

provide the requestor the right to review such information in the

requestor's offices.

16.3 Monthly payment date: Shipper (or other payor) shall pay

Transporter, at a bank designated by Transporter, so that payment

is received and Transporter has available funds within ten (10)

calendar days from the receipt of the invoice, for the gas service

purchased by Shipper during the preceding month and invoiced by

Transporter pursuant to this Tariff or the gas service agreement.

Shipper (or other payor) shall provide Transporter with supporting

documentation with any payment as well as the appropriate invoice

number on the payment(s). Transporter shall apply the payment

pursuant to the supporting documentation provided.