East Tennessee Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 159 Original Sheet No. 159 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

(a) Each Shipper will be allocated a portion of Transporter's demand and

commodity Unrecovered Purchased Gas Cost Account balance on the

Implementation Date, plus adjustments to reflect changes in the accruals

and estimates for billing dispute settlements, carrying charges and other

amounts that are known and measurable within the six month period

following termination.

(b) Each Shipper will have allocated to it an amount of the total Unrecovered

Purchased Gas Cost Account demand balance according to the following

formula:

(X/Y)(Z)= Shipper's allocated share of Unrecovered Purchased Gas Costs

Account demand balance.

where

X= the Shipper's effective sales contract demand effective immediately

prior to the Implementation Date; and

Y= the total of the effective sales contract demands under all of

Transporter's CD, SG, and SGS sales contracts effective immediately

prior to the Implementation Date; and

Z= the total Unrecovered Purchased Gas Cost Account demand balance.

Purchased Gas Cost Account commodity balance according to the following

formula:

(A/B)(C)= Shipper's allocated share of Unrecovered Purchased Gas Costs

Account commodity balance.

where

A= Shipper's actual gas purchases pursuant to its sales contract for the

12 months prior to the Implementation Date; and

B= the total purchases of all customers under Transporter's Rate

Schedules CD, SG, and SGS during the 12 months prior to the

Implementation Date.

C= the total Unrecovered Purchased Gas Cost Account Commodity balance.