*Tennessee Gas Pipeline Company*

*FIFTH REVISED VOLUME NO. 1*

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Effective Date: 04/01/1996, Docket: RP95-396-007, Status: Effective

**First Revised Sheet No. 215A **First Revised Sheet No. 215A : Effective

Rate Schedule LMS - PA

Load Management Service - Pooling Area (continued)

(ii) For all Parties whose % monthly imbalance is less than or equal

to 5% (as calculated according to Section 7(a) or (b) 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'

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(d)(ii) of this

Rate Schedule LMS-PA.

- "Total Negative Imbalance "or "N" shall mean the abv

of the sum of all actual negative imbalances under

Section 7(d)(ii) of this Rate Schedule LMS-PA.

- "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)

_______ ___

P P

(b) If I < zero, then:

- Price for negative imbalances =

(abv(I) x HP) + (P x AP)

_______ ___

N N

- Price for positive imbalances and imbalances less than

or equal to 1,000 Dth = AP