*Tennessee Gas Pipeline Company*

*FIFTH REVISED VOLUME NO. 1*

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Effective Date: 12/04/1997, Docket: RP97-386-000, Status: Effective

**Second Revised Sheet No. 207B **Second Revised Sheet No. 207B : Effective

Superseding: First Revised Sheet No. 207B

Schedule LMS - MA

Load Management Service - Market Area (continued)

(B) For all Parties whose % monthly imbalance is less than or equal to 5% (as

calculated according to Section 7(c) of this Rate Schedule) or whose monthly

imbalance (either actual or operational) is less than or equal to 1,000 Dth, the

following definitions shall apply to the formula under which the Parties' actual

imbalance volumes are "cashed out":

- "Total Positive Imbalance" or "P" shall mean the absolute value

("abv") of the sum of all actual positive imbalances under Section

7(c)(vii)(B) of this Rate Schedule LMS-MA.

- "Total Negative Imbalance" or "N" shall mean the abv of the sum of all

actual negative imbalances under Section (c)(vii)(B) of this Rate

Schedule LMS-MA.

- "Net Pipeline Imbalance" or "I" shall mean the difference between the

Total Positive Imbalances and the Total Negative Imbalances (I=P-N).

- Each of the imbalances (P, N, and I) shall be calculated once, no

later than the first billing of cash outs after the close of the

month.

The Parties' actual imbalance volumes shall be "cashed out" according to the

following formula:

(a) If I > or = zero then:

- Price for negative imbalances and imbalances less than or equal to

1,000 Dth = AP

- Price for positive imbalances =

(abv(I) x LP) + (N x AP)

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P P