East Tennessee Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 160 Original Sheet No. 160 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

(d) Upon conclusion of the six-month period following termination, Transporter

shall (a) issue a check for any amounts due to Shipper or submit an

invoice for any amounts due to Transporter with the Shipper having the

option of paying such invoice either in a lump sum or in 12 monthly

installments including interest on the unpaid balance calculated pursuant

to Section 154.305(h) of the Commission's Regulations; and (b) file a

report with the FERC detailing the final balance in Account No. 191, with

adjustments. At the end of the amortization period, Transporter shall

file a report with the FERC showing the actual amount billed (or refunded)

to each customer.

23.3 Recovery of Tennessee Gas Costs: Tennessee Gas Costs shall be billed/refunded

to all Shippers that were firm sales customers of Transporter on the

Implementation Date. Transporter will bill Shippers for Tennessee Gas Costs

attributable to Shippers as follows:

(a) Each Shipper will be allocated a portion of Tennessee Gas Costs as of the

effective date of termination of Tennessee's Purchased Gas Adjustment

clause ("Tennessee Termination Date") plus adjustments to reflect changes

in the accruals and estimates for billing dispute settlements, carrying

charges and other amounts which are known and measurable within the six-

month period following the Tennessee Termination Date.

(b) Each Shipper will have allocated to it an amount of Tennessee Gas Cost

balance according to the following formula:

(X/Y)(Z)= Shipper's allocated share of Tennessee Gas Cost 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 sales contracts effective immediately prior to the