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Fifth Revised Sheet No. 145 Fifth Revised Sheet No. 145 : Superseded

Superseding: Fourth Revised Sheet No. 145

GENERAL TERMS AND CONDITIONS (Continued)

(f) GISB Standard 5.3.6 (Version 1.3) states: If the Releasing Shipper wishes to

recall capacity to be effective for a Gas Day, the notice should be provided to

the transportation service provider and the acquiring shipper no later than 8

A.M. Central Clock Time on nomination day. The Releasing Shipper may not effect

a partial day recall of capacity. Such notification will confirm that the

conditions of recall have been met and will be accompanied by the scheduling

information required by Section 15. A Releasing Shipper may specify in the

Release Request whether the recalled capacity is to be reput to the original

Replacement Shipper and the terms of the reput. These terms may be either: (i)

reput must be accepted by the original Replacement Shipper for the original

terms of the release or (ii) reput may be accepted at the option of the original

Replacement Shipper for the original terms of the release. The Releasing

Shipper may effect a reput by notifying Transporter and Replacement Shipper by

8:00 A.M. Central Clock Time on the day of the nomination deadline on the day

prior to the effective date of the reput of entitlements to Replacement Shipper.

(g) Transporter may invalidate any Release Request or any Bid subsequent to its

posting on PASSKEY that does not conform in any material respect, within

Transporter's sole discretion, to the requirements of this Section 17 and such

invalidated Release Request or Bid shall be deemed null and void.

(h) Notwithstanding anything herein to the contrary, all Releasing Shippers that

release capacity on a temporary basis shall remain responsible for payment of

all demand charges for released transportation; provided, however, that

Transporter and Shipper may, in connection with their agreement to a Negotiated

Rate under a firm transportation rate schedule, agree upon Releasing Shipper

payment obligations and crediting mechanisms in the event of a capacity release

that vary from or are in addition to those set forth herein and in Subsection

(i) of this Section; provided that nothing in the foregoing proviso shall

authorize Transporter or Shipper to violate the FERC's policy with respect to

negotiation of terms and conditions of service. The Releasing Shipper shall

receive a demand credit equaling the demand dollars for which Transporter bills

the Replacement Shipper. A demand rate for the purposes of this Section

consists of (i) the base demand rate, and (ii) all applicable surcharges. Any

discount from said rate comes first off the surcharges and then off the base

demand rate. Therefore a Releasing Shipper paying a discounted rate is only

entitled to receive any revenues from the release of its capacity that exceed

the amount of the applicable surcharges.

(i) Transporter shall bill Replacement Shipper in accordance with Section 16 of the

General Terms and Conditions based upon the rates, charges, and surcharges

incorporated in the Released Transportation Service Agreement. The commodity

charges for the Replacement Shipper will include the maximum commodity rate

under the applicable rate schedule including all adjustments. If the

Replacement Shipper fails to pay all or any portion of any bill by the due date

specified on the bill, Transporter shall send an invoice to the Releasing

Shipper for all unpaid amounts up to the amount of the Releasing Shipper's

reservation charge, which the Releasing Shipper shall pay to Transporter with

interest on the unpaid amount, which interest shall be calculated from the date

that Transporter credited the Releasing Shipper for the applicable demand

charges in accord with (h) above. Releasing Shipper shall submit the payment

within ten days of