Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 09/01/1993, Docket: RS92- 27-005, Status: Effective

First Revised Sheet No. 136 First Revised Sheet No. 136 : Superseded

Superseding: ORIGINAL SHEET NO. 136

GENERAL TERMS AND CONDITIONS (Continued)

27.2 The Contract Demand under sales contracts in effect

prior to the effective date of Transporter's filing in

FERC Docket No. RS92-27 was stated in cubic feet. Upon

any conversion provided herein, the Contract Demand for

the converted FT and FT-SG contracts shall be stated in

dekatherms. For purposes of this conversion,

Transporter shall use the current heating value of

1,026 Dth per million cubic feet of gas. However, in

the event of a significant decline in the heating value

of gas on Transporter's system, Transporter shall not

be obligated to deliver more cubic feet of gas to any

Shipper than the quantity calculated using a heating

value of 1,026 Dth per million cubic feet. In the

event of such a decline in heating value of gas on

Transporter's system, Transporter will call a meeting

of all Shippers to discuss an appropriate remedy.

28. DELIVERY POINT CAPACITY

Shippers shall be allocated Primary Delivery Point Capacity

at the same points listed under their sales and

transportation contracts in effect as of the effective date

of Transporter's restructuring pursuant to FERC Docket No.

RS92-27.

29. ALLOCATION OF FIRM RECEIPT POINT CAPACITY

29.1 Shippers shall be allocated total Primary Receipt Point

capacity equal to the Contract Demand specified in

their sales contract in effect as of the effective date

of Transporter's restructuring pursuant to FERC Docket

No. RS92-27, plus an amount necessary to recognize fuel

and losses.

29.2 All remaining Receipt Point capacity on Transporter's

system shall be available to each firm Shipper as a

Secondary Receipt Point on a pro rata basis.

30. ALLOCATION OF UPSTREAM TRANSPORTATION CAPACITY

30.1 Transporter shall allocate and assign its rights to

firm transportation capacity under its contract with

Tennessee pursuant to Tennessee's FT-A Rate Schedule to

all Firm Sales customers that were purchasing gas from

Transporter as of the effective date of Transporter's

restructuring pursuant to FERC Docket No. RS92-27,

based on each customers Contract Demand.

30.2 Shippers receiving an allocation and assignment of