East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 07/05/2008, Docket: RP08-398-000, Status: Effective

Second Revised Sheet No. 163 Second Revised Sheet No. 163Superseding: First Revised Sheet No. 163 IT RATE SCHEDULE INTERRUPTIBLE TRANSPORTATION SERVICE 4.3 Incidental Charges: In addition to the charges pursuant to Section 4.1 and 4.2 of this Rate Schedule, Transporter shall charge Shipper an amount to reimburse Transporter 100% for any filing or similar fees and, if applicable, sales or use tax that have not been previously paid by Shipper, that Transporter incurs in establishing or rendering service. Transporter shall not use the amounts of incidental charges so collected as either costs or revenues in establishing its general system rates. The applicable incidental charges shall be reflected on the IT Agreement. 4.4 Crediting of Revenues: Subsequent to Transporter's recovery of all transmission costs allocated to this service under this Rate Schedule, 90% of all net revenues received by Transporter under this Rate Schedule shall be credited to all firm Shippers under Transporter's Rate Schedules FT-A and FT-GS. Credits shall be applied based on each Shipper's contribution to fixed costs during the year under its firm agreement. For the purpose of this section, "net revenues" shall mean all revenues received by Transporter for interruptible transportation service, less variable costs and applicable surcharges. Any credits due hereunder shall be made within 90 days following each anniversary of the Implementation Date and shall include interest at the Commission approved rate. 4.5 Negotiated Rates: Notwithstanding any provision of Transporter's effective FERC Gas Tariff to the contrary, Transporter and Shipper may mutually agree in writing to rates, rate components, charges or credits for service under this Rate Schedule that differ from those rates, rate components, charges or credits that are otherwise prescribed, required, established or imposed by this Rate Schedule or by any other applicable provision of Transporter's effective FERC Gas Tariff. If Transporter agrees to such differing rates, rate components, charges or credits ("Negotiated Rates"), then the Negotiated Rate(s) shall be effective only for the period agreed upon by Transporter. During such period, the Negotiated Rate shall govern and apply to the Shipper's service and the otherwise applicable rate, rate component, charge or credit, which the parties have agreed to replace with the Negotiated Rate, shall not apply to, or be available to, the Shipper. At the end of such period, the otherwise applicable maximum rates or charges shall govern the service provided to Shipper. Only those rates, rate components, charges or credits identified by Transporter and Shipper in writing as being superseded by a Negotiated Rate shall be ineffective during the period that the Negotiated Rate is effective; all other rates, rate components, charges or credits prescribed, required, established or imposed by this Rate Schedule or Transporter's FERC Gas Tariff shall remain in effect. Transporter shall make any filings with the Commission necessary to effectuate a Negotiated Rate.5. SCHEDULING AND CURTAILMENT Transporter shall schedule interruptible transportation according to the IT rate paid by Shippers each Month, scheduling IT at higher rates ahead of IT at lower rates. The foregoing notwithstanding, if an IT Shipper was flowing gas under its IT Agreement during the previous Month, such Shipper will be notified prior to the start of the Month of delivery if its current IT nomination can not be scheduled due to price, and given an opportunity to offer a price that will enable its IT nomination to be scheduled. IT Shippers paying the same rate shall be scheduled pro rata based on Scheduled Quantities.