Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-165-001, Status: Effective

First Revised Sheet No. 42 First Revised Sheet No. 42 : Superseded

Superseding: ORIGINAL SHEET NO. 42

RATE SCHEDULE FT-SG (continued)

service shall be the quantity of gas required for Transporter's

fuel and losses ("Fuel Quantity"), associated with rendering

transportation service pursuant to this Rate Schedule. The Fuel

Quantity shall be calculated by multiplying the Fuel Retention

Factor shown on the effective Tariff Sheet No. 4 times the

quantity of gas nominated for transportation pursuant to this

Rate Schedule with the result of this calculation rounded to the

nearest whole dekatherm [(1-Fuel Retention Factor % / 100) x

Receipt Quantity = Delivery Quantity]. The winter and summer

Fuel Quantity shall be separately stated. Transporter may

redetermine the Fuel Retention Factor, such redetermination to

be effective January 1 of any year, by filing revised tariff

sheets and supporting workpapers.

9. FT-SG MONTHLY BILL

The Monthly Bill for service shall be equal to:

(a) The applicable Commodity Rate(s) under Section 5

multiplied by the dekatherms of natural gas transported and

delivered in the month pursuant to this Rate Schedule; and

(b) If applicable, any other charges pursuant to Section 5.

10. QUALITY OF GAS TENDERED FOR TRANSPORTATION

Refer to Section 2 of the General Terms and Conditions of

Transporter's FERC Gas Tariff.

11. MEASUREMENTS

Refer to Section 3 of the General Terms and Conditions of

Transporter's FERC Gas Tariff.

12. WAIVER

Transporter may waive any rights hereunder or any obligations of

Shipper hereunder on a basis which is not unduly discriminatory;

provided that no waiver shall operate or be construed as a

waiver of other or future rights or obligations, whether of a

like or different character.