Tennessee Gas Pipeline Company


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Effective Date: 03/24/2004, Docket: RP02-114-005, Status: Effective

Seventh Revised Sheet No. 209B Seventh Revised Sheet No. 209B : Effective

Superseding: Sixth Revised Sheet No. 209B



Schedule LMS - MA

Load Management Service - Market Area (continued)



Refunds shall be based on the sum of commodity volumes for Non-Offending

parties for the applicable cashout period. Non-Offending parties shall

be determined on a monthly basis and are those shippers and OBA point

operators subject to the cashout provisions of Rate Schedules LMS-MA and

LMS-PA that had an imbalance within a zero to five percent tolerance (as

calculated according to Section 7(c) of this Rate Schedule) or 1000 Dth.

The total monthly commodity volumes for Non-Offending parties will be

accumulated for the applicable annual cashout period and a pro rata

allocation will be applied to the total amount to be refunded in order

to determine the refund amount for each party. When refunds are to be

made, Transporter shall include in the Annual Cashout Report a schedule

supporting the allocation of refunds to each party.


To the extent that the Net Cashout Balance in any Annual Cashout Period

results in a negative balance, such balance shall be carried forward and

applied to the next annual determination of the Net Cashout Balance.


(h) Mutual Assistance - In order to prevent or alleviate an operational

constraint on its system, Transporter may request that a Balancing Party

increase or decrease its flows at stated point(s) independent of the

nominations at that point(s). In any month in which a Balancing Party

conforms with the request made by Transporter, Transporter shall waive

all Daily Variance charges, for those days that Balancing Party provided

mutual assistance, accrued by the Balancing Party during such month.

The agreement to provide mutual assistance shall be at the discretion of

Balancing Party and Transporter.


8. Storage Swing Option


(a) A Balancing Party meeting the requirements set forth in this section may

elect to resolve Daily Imbalances through the Storage Swing Option. The

Storage Swing Option is designed to allow a Balancing Party with access

to storage contracts provided by Transporter under Rate Schedule FS or

IS or with access to swing service provided by a third party ("Third

Party Provider or TPP") to use such access for balancing of Daily

Imbalances. A Balancing Party may use any number of designated FS or IS

contracts or TPP Service Points (as defined in Section 8(c)(i) of this

Rate Schedule) at a time for swing purposes. Balancing Party's rights

hereunder shall be limited to those of the contracting party under the

applicable FS or IS contracts or TPP Service Points.


(b) Storage Swing Using a Storage Contract(s)


(i) General Requirements: A Balancing Party electing to use a

storage contract(s) under Transporter's Rate Schedule FS or IS

for swing purposes must provide Transporter with the following

information no later than 2 business days prior to when the

Storage Swing Option is to be effective and for each subsequent

re-election consistent with Section 5 of Rate Schedule LMS-MA:

FS or IS contract number(s), FS or IS contracting party(s), any

applicable agency contract number(s), any applicable agent(s)

and its fuel election as provided in Section 8(d) of this Rate

Schedule and any applicable ranking of the storage contracts.