East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 33-003, Status: Effective

Original Sheet No. 158 Original Sheet No. 158 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

22. WARRANTY OF TITLE TO GAS

This Section 22 shall apply to all transportation service unless otherwise provided

in the applicable Rate Schedule or transportation contract. Shipper and Transporter

both warrant for itself, its successors and assigns, that it will have, at the time

of delivery of gas hereunder, good title or the right to acquire title to the gas it

delivers and that the gas it delivers hereunder shall be free and clear of all liens,

encumbrances and claims whatsoever. In the event of a breach of this warranty, the

breaching party shall indemnify the other and save it harmless from all suits,

actions, debts, accounts, damages, costs, losses, and expenses arising from or out

of any adverse claims of any and all persons to said gas and/or to royalties, taxes,

license fees or charges thereon applicable for such delivery of gas, and that the

breaching party will indemnify the other and save it harmless from all taxes or

assessments that may be levied and assessed upon such delivery and which are by law

payable by, and the obligation of, the party making such delivery. If Shipper's

title or right to deliver gas to be transported is questioned or involved in any

action, Shipper shall not qualify for or shall be ineligible to continue to receive

service until such time as Shipper's title or right to deliver is free from question;

provided, however, Transporter shall allow Shipper to qualify for or continue

receiving service under this Tariff if Shipper furnishes a bond satisfactory to

Transporter. Title to the gas received by Transporter at the Receipt Point(s) shall

not pass to Transporter, except for title to gas delivered for Transporter's system

fuel and uses and gas lost and unaccounted for, which shall pass to Transporter upon

delivery at the Receipt Point(s).

23. BILLING OF UNRECOVERED PURCHASED GAS COSTS

23.1 Applicability: This article shall govern the recovery of:

(a) Amounts reflected in Transporter's Unrecovered Gas Cost Account pursuant

to the terms of Transporter's previously effective Purchased Gas Cost

Adjustment clause in Section 21 of Volume 1 of Transporter's formerly

effective Tariff ("Transporter Gas Costs"); and

(b) Amounts billed by Tennessee Gas Pipeline Company to Transporter pursuant

to Section XIX of Tennessee's General Terms and Conditions contained in

its Tariff that becomes effective upon the implementation of restructured

services in Docket No. RS-92-23-000 ("Tennessee Gas Costs").

23.2 Recovery of Transporter Gas Costs: Transporter will terminate its Purchased Gas

Cost Adjustment clause effective on the Implementation Date. The Unrecovered

Gas Cost Account balance shall be billed/refunded to Shippers that were firm

sales customers of Transporter under Transporter's Rate Schedules CD, SG, and

SGS on the Implementation Date. Transporter will bill/refund Shippers for

Transporter Gas Costs attributable to each Shipper as follows: