East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/14/2000, Docket: RP00-540-000, Status: Effective

Third Revised Sheet No. 170 Third Revised Sheet No. 170 : Superseded

Superseding: Second Revised Sheet No. 170

GENERAL TERMS AND CONDITIONS (Continued)

35.3 System and Service Information

Any person desiring information on the availability, pricing, or

other terms of the transportation services can call Contract

Administration (713) 627-4781.

35.4 Service Complaints

Customers are encouraged to resolve any disputes informally with

their designated customer representatives. Complaints

concerning any of Pipeline's Order Nos. 497, et seq., or 566

compliance procedures should be directed to the Office of the

General Counsel at (713) 627-5368 or by fax to Transporter's

Legal Department at (713)989-3190. Transporter will respond

initially to the complaint within forty-eight (48) hours, and in

writing within thirty (30) days. A complainant dissatisfied

with a response should resubmit the complaint in writing to the

Duke Energy Gas Transmission Legal Department, Attorney for East

Tennessee Natural Gas Company, P.O. Box 1642, Houston, Texas

77251-1642.

35.5 Common Operating Facilities and Personnel

Transporter shares no operating facilities or operating

personnel with any of its marketing or brokering affiliates.

36. CONSTRUCTION OF FACILITIES

36.1 Transporter will construct, at a Shipper's or Balancing Party's

request, only those facilities to render requested services that

interconnect with facilities that either cross or are

immediately adjacent to Transporter's existing facilities;

provided, however, Transporter shall not be obligated to

construct facilities hereunder that will result in the expansion

or diminishment of Transporter's pipeline system. In the event

that Transporter determines that it will construct facilities

that will result in the expansion of its pipeline system,

Transporter shall offer the proposed expansion capacity to all

Shippers on a non-discriminatory basis. Transporter will own

and operate all facilities constructed. Before designating an

interconnection as a Receipt or Delivery Point for service under

any of Transporter's Rate Schedules, Transporter shall require a

Balancing Agreement with the operator of the connecting facility

pursuant to either Rate Schedule LMS-MA or LMS-PA as applicable.

36.2 Except as provided in Section 36.3 herein, Shippers or Balancing

Parties that request service that requires construction of

facilities by Transporter shall reimburse Transporter for the

costs of such facilities according to the provisions of the

applicable Rate Schedule. Transporter shall not use the

reimbursement amounts so collected as either costs or revenues

in establishing its general system rates. Shipper or the

Balancing Party shall pay the new facilities charge by lump sum

payment, based upon Transporter's estimated cost, prior to any

construction activity unless another