East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/01/1998, Docket: RP98-380-001, Status: Effective

Sub Original Sheet No. 52B Sub Original Sheet No. 52B : Superseded




Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)



(a) Requirements: Balancing Party must provide at least eight (8) hours prior

notice to Transporter of its election of SDO, to be effective the next gas day

or concurrent with Transporter's notification of its intent, pursuant to

Section 7.1 above, to invoke its right to assess Unauthorized Overrun Charges.

Balancing Party must hold contracts for transportation under Transporter's Rate

Schedule FT-A and contracts for storage attached to Transporter's system. At

the time of its notice of its election, Balancing Party must rank consecutively

the storage contracts designated for SDO if more than one contract is to be

used. Balancing Party's election of SDO shall remain in effect until

termination of SDO pursuant to Section 7.4(c) of this Rate Schedule, or

Balancing Party has exceeded its storage balance available for SDO whichever

is earlier.


(b) Nominations for SDO:


(i) Under SDO, Transporter will nominate Balancing Party's designated FT-A

Agreement(s) from the storage receipt(s) to the delivery points(s)

covered by Balancing Party's OBA and at which the excess takes occurred.


(ii) Transporter will nominate a quantity up to the lesser of Balancing

Party's transportation MDQ or storage MDWQ. Any volumes nominated by

Balancing Party and scheduled by Transporter on the designated FT-A

Agreement(s) and/or the designated storage agreements will reduce the

transportation MDQ and/or storage MDWQ available for SDO.


(iii) Balancing Party must verify the quantity of gas scheduled for delivery

at the delivery point(s) within two (2) business days from the day the

gas was delivered. Transporter will nominate the quantities to be

withdrawn from the storage account for SDO after Balancing Party has

verified the quantities delivered, but no later than five days after the

last day of the month. Balancing Party's failure to provide accurate

verifications of quantities of gas delivered may result in termination

of SDO after eight (8) hours' prior notice from Transporter.


(iv) Any Balancing Party electing SDO and utilizing Transporter's LNG

facilities shall pay to Transporter the applicable LNGS rate(s) as set

forth in the LNGS Rate Schedule and Sheet No. 4 of this Tariff for the

withdrawals from storage. In addition, any Balancing Party electing SDO

shall pay to Transporter a "Transportation Component." The

Transportation Component for SDO shall be equal to the applicable

commodity rate, plus fuel, under Transporter's FT-A Rate Schedule,

multiplied by the volumes in excess of the MAD TQ.


(c) Upon eight (8) hours' prior notice to Balancing Party, Transporter has the

right to terminate SDO for Balancing Party's violation of any provisions of

this Section 7.4. Balancing Party has the right, at its sole discretion, to

terminate SDO with eight (8) hours prior notice to Transporter, effective at

the beginning of the next gas day.


(d) Balancing Party may only utilize a TPP storage point(s) for SDO upon the TPP's

execution of both a Balancing Agreement under Rate Schedule LMS-PA and a TPP





8.1 Unauthorized Overrun: A Balancing Party that has elected the Cashout Option may also

be subject to an Unauthorized Overrun Charge as set forth in Section 7.