Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 09/01/1993, Docket: RS92- 27-007, Status: Effective

Second Revised Sheet No. 137 Second Revised Sheet No. 137 : Superseded

Superseding: FIRST REVISED SHEET NO. 137

GENERAL TERMS AND CONDITIONS (Continued)

Tennessee firm transportation capacity shall be

responsible for all charges associated with such

capacity, including but not limited to gas supply

realignment costs and take-or-pay costs, effective on

the implementation date of Transporter's filing in FERC

Docket No. RS92-27.

30.3 All Shippers that were purchasing gas from Transporter

on November 1, 1992 that are allocated Tennessee

Storage shall receive a corresponding amount of

Transporter's FT-A capacity on Tennessee.

31. CHANGE OF CAPACITY ENTITLEMENT

31.1 Shippers desiring to increase or decrease their

allocated share of capacity on Transporter's system

from any particular Receipt Point and potential

Shippers seeking capacity on Transporter's system, may

submit a Transportation Service Request Form which is

set forth at Tariff Sheet No. 206 no later than thirty

(30) days prior to the proposed effective date,

stating:

(a) In the event that the requesting party has an

existing transportation contract with Transporter:

(i) Shipper's full name and address, and the

name of the principal contact for purposes

of the change in capacity;

(ii) the quantity and type of capacity that the

Shipper wants to relinquish, if any;

(iii) the quantity and type of capacity that the

Shipper desires to acquire, if any.

(b) In the event the requesting party does not have an

existing transportation contract with Transporter,

then the party shall provide, in addition to the

information required in Section 31.1 (a) above,

demonstration of creditworthiness under the

Transporter's applicable Rate Schedule.

31.2 Transporter will notify the requesting party within 25

days of receipt of Shipper's request as to whether

Transporter is able to grant the request. Transporter

shall have no obligation to honor a request for an

increase unless firm capacity is available, and no

obligation to honor a request for a decrease unless