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First Revised Sheet No. 83 First Revised Sheet No. 83 : Superseded

Superseding: ORIGINAL SHEET NO. 83

GENERAL TERMS AND CONDITIONS (continued)

Irrespective of the transportation quantity set forth in the

Shipper's IT Contract, no Shipper receiving interruptible

service, including service related to the transportation of

Authorized Overrun Quantities under Rate Schedule FT, FT-SG and

IT, may be curtailed due to a capacity limitation which is the

result of a change during the month in interruptible

transportation service for other Shippers. Provided, however,

that interruptible service may be curtailed due to a change in

interruptible service for other Shippers where the change is due

to the correction of a previously existing force majeure

condition. Provided further, that Transporter shall have

the right to modify on a nondiscriminatory basis the above

priority order in the event that a constraint on a particular

part of Transporter's system requires the temporary

interruption of a service higher, by ranking, than another

service which, because of its location on Transporter's system,

need not be interrupted.

3.7 Operational Balancing Agreements, Balancing and Cash-outs - It

shall be the responsibility of the Shipper receiving any

transportation service(s) from Transporter, or any party using

such services on behalf of the Shipper, to use all reasonable

efforts to ensure that receipts and deliveries of gas are equal

to the nominations scheduled by Transporter. The Shipper shall

be responsible to control, and if necessary, adjust receipts,

deliveries and confirmed nominations. To the extent that a

Shipper is out of balance, it will be subject to the daily and

monthly balancing provisions contained within this Section 3.7.

(a) Operational Balancing Agreements - OBAs shall specify

the gas custody transfer procedures to be followed by

Transporter and the OBA Party for the confirmation of

scheduled quantities of gas to be delivered by

Transporter at the Point(s) of Delivery. Such OBAs

shall provide that any variance between actual

quantities delivered by Shipper (as measured by

Transporter) and quantities scheduled and confirmed

pursuant to Section 3.4 for any day shall be resolved

by the payment or crediting by Transporter to

Shipper, in the situation where receipts by