Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-165-002, Status: Effective

Second Revised Sheet No. 103 Second Revised Sheet No. 103 : Superseded

Superseding: FIRST REVISED SHEET NO. 103

GENERAL TERMS AND CONDITIONS (continued)

(d) The minimum term of any release shall be one day and

the maximum term shall be the remaining term of the

Releasing Shipper's Transportation Service Contract.

With respect to the releases for the remaining term of

the Releasing Shipper's Transportation Service

Contract, which shall be deemed to be a permanent

assignment (unless recall rights are specified in the

Release Request), Transporter shall enter into a new

Transportation Service Contract with the Replacement

Shipper, thereafter, the Replacement Shipper is

entitled to the right of first refusal even if the

remaining term is less than one year, provided the

Releasing Shipper's Transportation Service Contract

originally was for an initial term of one year or more.

The Releasing Shipper shall have no further rights or

obligations to Transporter in the future under that

Contract. Notwithstanding anything herein to the

contrary, the Releasing Shipper shall not be relieved

of its take-or-pay or transition cost obligations due

under the "Cosmic Settlement" in Docket Nos. RP86-119,

et al., or Transporter's settlement in Docket No. RP91-

103 or any other obligations which may become due and

which were incurred during the time the Releasing

Shipper had the rights to such capacity, unless

otherwise agreed to and paid in full by the Replacement

Shipper.

(e) The maximum rates for any release shall be the

applicable maximum reservation rate and commodity rate,

as well as all other applicable rates, charges and

surcharges set forth in this Tariff respecting service

under Rates Schedule FT, notwithstanding any discount

to such rates, charges or surcharges then in effect for

the Releasing Shipper.

(f) All terms and conditions of all releases must be

consistent with the Terms and Conditions of the

Releasing Shipper's Transportation Service Contract and

with this Tariff, including the provisions on

nominations and scheduling of service and curtailment

of service. Any re-release of the capacity by a

Replacement Shipper additionally must be consistent

with the terms of such Replacement Shipper's Released

Transportation Service Contract.