Tennessee Gas Pipeline Company


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Effective Date: 12/01/1997, Docket: RP96-268-004, Status: Effective

Second Revised Sheet No. 209G Second Revised Sheet No. 209G : Effective

Superseding: Substitute First Revised Sheet No. 209G



Schedule LMS - MA

Load Management - Market Area (continued)



(b) Description: A Pipeline Balancing Party may elect the DSS Option in

accordance with the requirements set forth below. The DSS Option allows

the Daily Variances (as defined in Section 7(b)(i) above) at Downstream

Delivery Point(s) to be treated as automatic storage injections or

withdrawals under the storage contracts of FS Contract Holders or as

scheduled transportation on contracts with a TPP(s) for TPP Shippers

subject to the limitations described below. The effect of such an

election on the Pipeline Balancing Party's Delivery Point Balancing

Agreement is an adjustment in monthly imbalances that must be resolved

through the Cash Out Option. On a daily basis, the imbalance at the

Pipeline Interconnect shall be adjusted to reflect Daily Variances

(subject to limitations under this Rate Schedule) at Downstream Delivery

Points. The DSS Option is designed to be used in conjunction with the

Cash Out Option. Nothing in this Section 9 shall affect a Pipeline

Balancing Party's obligation to cash out imbalances at the Pipeline

Interconnect in accordance with the Cash Out Option. The DSS Option may

not be used in conjunction with the Storage Swing Option.


(c) General Requirements: In order for a Pipeline Balancing Party to use the

DSS Option, the Pipeline Balancing Party must have an effective Delivery

Point Balancing Agreement with Transporter pursuant to this Rate Schedule

and must also execute a DSS Amendment in the form set forth in

Transporter's FERC Gas Tariff. The DSS Amendment obligates the Pipeline

Balancing Party to provide to Transporter information regarding Daily

Variances at the Downstream Delivery Point(s) no later than two (2)

business days after the date of flow and provides for adjustment of

operational imbalances to reflect storage swing activity. The flow at the

Pipeline Interconnect must also be able to be measured through equipment

meeting Electronic Custody Transfer Standards. Pipeline Balancing Party

may elect the DSS Option for up to ten (10) consenting Storage Contract

Holders. Each Storage Contract Holder may designate up to two of its FS

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

Rate Schedule) for resolution of Daily Variances at Downstream Delivery

Points. The Storage Contract Holder's FS Service Point or TPP Service

Point must be located in the same zone, an adjacent zone or a zone

downstream of the Pipeline Interconnect. For purposes of this subsection

(c), Zone 4 shall be considered adjacent to Zones 3 and 6 and Zone 3 shall

be considered adjacent to Zones 2 and 4.


(d) Specific Requirements: A Pipeline Balancing Party must make a DSS Option

election five (5) business days prior to the beginning of a calendar

month. Elections shall remain in effect throughout the month, and

continue on a month-to-month basis unless changed by Pipeline Balancing

Party. The Pipeline Balancing Party must also provide Transporter with

the following:


(i) a DSS Option election in a form that may be obtained from

Transporter, executed by Pipeline Balancing Party and the Storage

Contract Holder authorizing the adjustment of its FS Contract(s) or

the applicable contract(s) with the TPP and firm transportation

contract(s) to reflect activity under the DSS Option. A separate

election form must be completed for each Storage Contract Holder;