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First Revised Sheet No. 84 First Revised Sheet No. 84 : Superseded

Superseding: ORIGINAL SHEET NO. 84

GENERAL TERMS AND CONDITIONS (continued)

Transporter are greater than deliveries by

Transporter, or by the payment by Shipper to

Transporter, where receipts by Transporter are less

than deliveries by Transporter, in accordance with

the provisions of Section 3.7(d) below ("Cash-Out")

or pursuant to the provisions provided herein and

under the terms of the OBA, unless otherwise mutually

agreed. Transporter shall post on its EBB those

Point(s) of Receipt and Delivery which are subject to

an OBA.

(b) Daily Variances - The daily variance at any point

shall be the difference between the total volumes

scheduled for receipt and delivery at that point by

scheduled nomination pursuant to Section 3.4 and the

actual quantity of gas delivered by Transporter at

such point on any day, excluding volumes received or

delivered by Transporter pursuant to service under

its LMS Rate Schedule, as measured by Transporter.

(1) An OBA Party shall pay a daily overrun charge

equal to the daily overrun charge shown in

Tennessee Gas Pipeline's Tariff applicable to

Rate Schedule LMS for that portion of a daily

variance that exceeds the greater of ten percent

(10%) or 50 Dth of the daily limit. The daily

limit shall be (i) the scheduled daily quantity

applicable to a Receipt or Delivery Point(s) as

specified in the Customer Nomination Form(s) and

(ii) the DDQ specified in the OBA. On any day

that an OBA Party takes gas in excess of the

daily limit applicable to a Delivery Point,

without the prior consent of Transporter, such

OBA Party shall be subject to an Unauthorized

Overrun Charge of fifteen dollars ($15.00) for

each dekatherm of excess volumes taken or

delivered beyond the greater of ten percent

(10%) allowable variation or 50 Dth.

(2) Any Shipper delivering gas at a point not

subject to an OBA agreement shall pay a daily

overrun charge equal to the daily overrun charge

shown in Tennessee Gas Pipeline's Tariff

applicable to Rate Schedule LMS for that portion

of the daily variance that exceeds the greater