Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 27-010, Status: Effective

Second Revised Sheet No. 82 Second Revised Sheet No. 82 : Superseded

Superseding: FIRST REVISED SHEET NO. 82

GENERAL TERMS AND CONDITIONS (continued)

(g) among all interruptible transportation services

paying less than Transporter's maximum IT rate, based

on the discounted rate being paid.

(h) Volumes representing mid-month make-up of FT, FT-SG

or IT imbalances in excess of contract demand, not

otherwise authorized under 3.5(f), on a first

come/first served basis.

If Buyer has failed to tender any gas for transportation,

pursuant to a transportation agreement under Rate Schedule

IT, during the prior one-hundred thirty-five (135) day

period, then upon forty-five (45) days notice by

Transporter to Shipper, during which time Shipper

continues to fail to tender any such gas, Shipper's Gas

Transportation Contract under Rate Schedule IT shall be

terminated. Provided, further, that such termination shall

not occur if Shipper has been unable to tender any such

transportation gas as the result of an event of force

majeure as defined in Section 11.

A Shipper receiving service under Rate Schedule FT, FT-SG

or IT shall not lose its priority for purposes of this

Section 3.5 by the renewal, extension of the term of that

service or renegotiation of the existing contract.

Provided, however, any renewal or extension must be

pursuant to a rollover or evergreen provision of the

Transportation Contract.

Shippers receiving service under Rate Schedule FT, FT-SG

or IT shall not lose priority in utilization of

Transporter's mainline capacity for that service by adding

or changing Points of Receipt applicable to that service.

Provided, however, (i) a Shipper receiving firm

transportation service shall not have priority for service

from the new Point(s) of Receipt over a pre-existing firm

transportation Shipper receiving service from that

point(s); and (ii) a Shipper receiving interruptible

transportation service shall not have priority for service

from the new Receipt Point(s) over a pre-existing firm or

interruptible transportation Shipper receiving service

from that point. Pre-existing priority under

interruptible transportation service shall also not apply

to any increase in transportation quantity.

3.6 Allocation of Limited Capacity: If, on any day,

Transporter determines that the capacity of its system, or

any portion thereof including the points at which gas is

tendered for transportation, is insufficient to serve all

transportation requirements which are otherwise scheduled