Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 09/01/1993, Docket: RS92- 27-005, Status: Effective

First Revised Sheet No. 57 First Revised Sheet No. 57 : Superseded

Superseding: ORIGINAL SHEET NO. 57

RATE SCHEDULE LMS (continued)

the OBA and the actual quantity of gas received from

Transporter at all such points on any day that the

scheduled quantities were in effect.

5.2 An OBA Party electing DDS service shall pay the daily

overrun charges at the rate set forth in the summary of

Rates and Charges in Tennessee's effective Tariff for that

portion of a daily variance that exceeds the sum of (i) 10%

of the scheduled and confirmed volume plus (ii) the DDQ of

DDS service specified in its OBA. The OBA Party electing

DDS shall pay a monthly demand charge equal to the DDQ

elected multiplied by the effective DDS demand rate shown

in the summary of Rates and Charges of Tennessee's Tariff.

The OBA Party electing LMS service may also be subject to

an unauthorized overrun charge for quantities above the

daily limitation as set forth in Section 3.7 of the General

Terms and Conditions of Transporter's FERC Gas Tariff.

5.3 The OBA Party not electing DDS Service shall pay daily

overrun charges at the rate set forth in the summary of

Rates and Charges in Tennessee's effective tariff for that

portion of a daily variance that exceeds 10% of the

scheduled and confirmed volume. An OBA Party may also be

subject to an unauthorized overrun charge for quantities

above the daily limitation as set forth in Section 3.7 of

the General Terms and Conditions of Transporter's FERC Gas

Tariff.

5.4 Based upon the best information available, an OBA Party

shall take action to correct any imbalances occurring

during the month by making adjustments in nominations,

receipts or deliveries. Transporter will accept

nominations for make-up quantities during the month on a

best efforts basis. If OBA Party fails to take such

corrective action, then Transporter may, upon 48 hours

notice, adjust OBA Party's scheduled receipts and

deliveries over the remainder of the calendar month in

order to maintain a balance of receipts, deliveries and

nominations.