East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 05/01/2000, Docket: RP00-534-000, Status: Effective

First Rev Second Revised Sheet No. 147 First Rev Second Revised Sheet No. 147 : Superseded

Superseding: First Rev First Revised Sheet No. 147

GENERAL TERMS AND CONDITIONS (Continued)

nominations and scheduling instructions of the Replacement

Shipper. The Replacement Shipper will indemnify Transporter

against any claim or suit by the Releasing Shipper, its

successors or assigns, arising from any action taken by

Transporter in reliance upon the nominations and scheduling

instructions of the Replacement Shipper and will hold

Transporter harmless for any actions taken by Transporter in

reliance upon the instructions of the Releasing Shipper.

However, Transporter shall not be relieved of liability for

its own negligent actions or wrongful conduct.

(m) Replacement Shippers may not change Primary Delivery Points

or otherwise alter the underlying agreement. Replacement

Shippers may use Secondary Delivery Points.

(n) All transportation rights released hereunder shall be

scheduled and curtailed as firm transportation service under

Section 15 of these General Terms and Conditions.

Interruption or curtailment of such released service shall

be in accordance with interruption or curtailment of firm

service under this Tariff and as prescribed by the terms of

the release.

(o) The rate paid by a Replacement Shipper in any capacity

release transaction with a term of less than one (1) year

during the period from March 27, 2000, through September 30,

2002, or any later date established by the Commission, which

is not subject to the maximum rate cap will be deemed to be

a final rate and is not subject to refund.

18. TEMPORARY RELEASE OR PERMANENT ASSIGNMENT OF RIGHTS TO LNGS SERVICE

18.1 Applicability - This Section 18 implements Section 284.8 of the

FERC's regulations and is applicable to any Shipper that holds

rights to LNGS Service pursuant to Transporter's Rate Schedule

LNGS, that elects to temporarily release or permanently assign all

or a portion of such storage rights ("Releasing Shipper"). A

Releasing Shipper shall have the right to release any portion of

its storage rights but only to the extent that the rights so

released are acquired by another party pursuant to the provisions

of this Section 18, that executes either a Released Storage

Service Agreement for a temporary release or a Pre-Assignment

Agreement for a permanent assignment. Such party shall be

referred to herein as "Replacement Shipper". A person that

desires to bid on and obtain storage rights released under the

provisions of this Section 18 shall be known as a "Bidder."

18.2 Releasing Shipper's Request - A Releasing Shipper that desires to

release its rights to LNG storage in a manner that does not

qualify for an exemption to posting pursuant to Section 18.11, may

post directly on PASSKEY, a Release Request, containing the

following information:

(a) Releasing Shipper's name and LNGS service agreement number;

(b) the Maximum Daily LNGS Quantity and Winter Season Quantity

to be released (including any minimum acceptable quantity);