Tennessee Gas Pipeline Company


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Effective Date: 10/01/2003, Docket: RP00-477-005, Status: Effective

Fifth Revised Sheet No. 211A Fifth Revised Sheet No. 211A : Effective

Superseding: Third Revised Sheet No. 211A



Rate Schedule LMS - PA

Load Management Service - Pooling Area (continued)



(d) On a day that the net pipeline position exceeds plus or minus 5%, any

Party under this Rate Schedule that 1) has a Daily Imbalance greater

than 20% of that Party's scheduled quantities and 2) the Daily Imbalance

is in the same direction as the net pipeline position, in addition to

the Daily Imbalance Charge set forth in Section 5(c) above, shall also

be subject to a per dekatherm Daily Imbalance Charge equal to four times

the currently effective maximum rate under Transporter's Rate Schedule

PAL. The Daily Imbalance Charge under this Section 5(d) shall apply only

to those quantities of the Daily Imbalance that exceed 20% of the

Party's scheduled quantities for that day.


(e) All revenues collected by Transporter as payment of the Daily Imbalance

Charges assessed under this Section 5 shall be credited to Eligible

Parties. Eligible Parties are Parties under this Rate Schedule and

Balancing Parties under Rate Schedule LMS-MA whose Daily Imbalances were

equal to or less than plus or minus 5% of the Parties' scheduled

quantities on the day(s) that Daily Imbalance Charges were assessed. An

Eligible Party will receive a pro rata allocation of the payments of the

Daily Imbalance Charges collected for a particular day based on the

scheduled quantities under the Eligible Party's Agreement for that day.

Credits to an Eligible Party will be aggregated throughout the calendar

year and will be disbursed annually to the Eligible Party on the invoice

following the first production month of the following year. Tennessee

will also post on its interactive Internet website the amount collected

and the amount credited to each Eligible Party.


(f) Transporter shall not assess any Daily Imbalance Charges against

Parties whose scheduled and flowing services are bumped as a result of

an intra-day nomination change in accordance with Article III, Section

4 of the General Terms and Conditions of Transporter's FERC Gas Tariff.

This waiver of Daily Imbalance Charges shall apply only for the day(s)

on which the services were bumped.