Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 27-003, Status: Effective

Original Sheet No. 38 Original Sheet No. 38 : Superseded

RATE SCHEDULE FT-SG (continued)

FT-SG Shipper's bid for released transportation capacity

and should the FT-SG Shipper then become a Replacement

Shipper in accordance with the provisions of Section 3 of

Transporter's General Terms and Conditions, then Shipper

may not reduce its nomination under its FT-SG Contract

until it has first reduced its nomination under its

Released Transportation Service Contract to zero.

6.2 An FT-SG Shipper may not receive gas pursuant to a Released

Transportation Service Contract between Transporter and a

third party unless its nominations under its FT-SG Contract

equal its Contract Demand.

6.3 An FT-SG Shipper may not receive gas delivered pursuant to

an FT Contract using the FT-SG Shipper's Delivery Point(s)

as a Primary or Secondary Delivery Point(s) unless the FT-

SG Shipper's nominations under its FT-SG Contract equals

its Contract Demand. Transporter shall have the right to

reject any nomination under an FT Contract for delivery at

an FT-SG Shipper's Delivery Point(s) if that FT-SG

Shipper's current FT-SG nomination is below its Contract

Demand.

6.4 An FT-SG Shipper may not ship gas under Transporter's IT

Rate Schedule unless its nomination under its FT-SG

Contract equals its Contract Demand. IF an FT-SG Shipper

is taking its full Contract Demand under its FT-SG Contract

and nominates additional quantities under an IT Contract,

then Shipper may not reduce its nomination under its FT-SG

Contract until it has reduced its nomination under its IT

Contract to zero.

6.5 An FT-SG Shipper may not receive gas at its Delivery

Point(s) shipped pursuant to an IT Contract entered into by

Transporter and a third party except as provided in Section

7 hereof. Transporter shall have the right to reject any

nominations under an IT Contract for delivery to an FT-SG

Shipper's Delivery Point(s) if the FT-SG Shipper or the IT

Shipper fails or ceases to meet the requirements of Section

7 of this Rate Schedule.