Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

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

First Revised Sheet No. 115 First Revised Sheet No. 115 : Superseded

Superseding: ORIGINAL SHEET NO. 115

GENERAL TERMS AND CONDITIONS (continued)

covenants or obligations imposed upon it by the executed

Service Contract, then in such event the other party may

at its option terminate said Contract by proceeding as

follows:

The Party not in default shall cause a written notice to

be served on the Party in default, stating specifically

the cause for terminating the contract and declaring it to

be the intention of the Party giving the notice to

terminate the same. Thereupon the Party in default shall

have thirty (30) days after the service of the aforesaid

notice in which to remedy or remove the cause or causes

stated in the notice for terminating the Contract, and if

within said period of thirty days the Party in default

does so remove and remedy said cause or causes and fully

indemnify the Party not in default for any and all

consequences of such breach, then such notice shall be

withdrawn and the Contract shall continue in full force

and effect. In case the Party in default does not so

remedy and remove the cause or causes or does not

indemnify the Party giving the notice for any and all

consequences of such breach, within said period of thirty

(30) days, the Contract shall terminate. Any

cancellation of the Contract pursuant to the provisions

of this section, except where Transporter fails to

transport gas delivered to it due to its negligence except

where such failure is due to the Shipper's own conduct or

that of its suppliers, shall be without prejudice to the

right of Transporter to collect any amounts then due to it

for natural gas delivered prior to the time of

cancellation, and shall be without prejudice to the right

of Shipper to receive any gas which it has not received

but for which it has delivered to Transporter for

transportation prior to the time of cancellation, and

without waiver of any remedy to which the Party not in

default may be entitled for violation of the Contract.

12. NOTICES

Unless otherwise specifically provided in this Tariff,

particularly with regard to notices and communications required

through Transporter's EBB, any notice, request, demand,

statement, or bill provided for in this Tariff or in an executed

Service Contract, or any notice which either Transporter or

Shipper may desire to give to the other, shall be in writing and