East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/01/2000, Docket: RP00-534-000, Status: Effective

Third Revised Sheet No. 115 Third Revised Sheet No. 115 : Superseded

Superseding: Second Revised Sheet No. 115




sales contract entitlement under the SG or SGS Contract to firm transportation and

shall execute either an FT-A or an FT-GS Agreement at Shipper's option, in

accordance with the provision of Transporter's Rate Schedule FT-A or FT-GS. In the

event that a former shipper under Transporter's SG or SGS Rate Schedule elects new

service under Rate Schedule FT-A, such shipper shall have a one-time option to be

effective one year from the Implementation Date to terminate the FT-A agreement and

enter into an FT-GS agreement for the same Transportation Quantity for a term

commensurate with that of the FT-A agreement. Shipper shall give Transporter three

(3) months prior notice of such election.


7.2 The Contract Demand under converting Shippers' former sales contracts was stated in

cubic feet and the Transportation Quantity for the converted FT-A and FT-GS

Agreements shall be stated in dekatherms. For purposes of this conversion,

Transporter will use the current heating value of 1.03 DTH per million cubic feet

of gas. However, in the event of a significant decline in the heating value of gas

on Transporter's system, Transporter shall not be obligated to deliver more cubic

feet of gas to any Shipper than the quantity calculated using a heating value of

1.03 DTH per million cubic feet, and at such time, Transporter shall meet with

shippers to discuss an appropriate resolution.


7.3 Termination of Long Term Firm Service Agreements. If a Shipper, pursuant to the

terms of an FT-A, FT-GS, or LNGS Service Agreement, elects to terminate its

agreement or exercise its right of first refusal thereunder, the capacity under

such agreement shall be made available in accord with the following:


(a) If Shipper elects, pursuant to the applicable notice requirement included

in Shipper's Service Agreement, to terminate its service agreement, whether

such termination is applicable to the full or only a volumetric portion of

the Transportation Quantity of the service agreement, the availability of

the capacity will be posted on PASSKEY and will be awarded on a first

come/first served basis for all requesting Shippers. Any such volumetric

termination shall reduce the MDQ rights specified in Shipper's service

agreement based on the ratio of the volumetric quantities to be terminated

and the Transportation Quantity in effect immediately prior to the

termination, effective on the date such reduction is effective. In the

event that Shipper elects to terminate, either at the end of the stated

primary term or any extension thereof, pursuant to the applicable terms and

notice requirements included in the service agreement, only a volumetric

portion of its Transportation Quantity included in such service agreement,

then Shipper's prior written notification to Transporter of its intention

to partially terminate such service agreement must expressly state (i) the

volumetric quantity of the Transportation Quantity Customer is terminating;

and (ii) the volumetric quantity of the Transportation Quantity Customer is

retaining. To the extent that Shipper delivers to Transporter a valid

notice pursuant to this Section 7.3(a), Shipper thereafter shall have no

right of first refusal pursuant to Section 7.3(b) below with respect to the

volumetric portion of the Transportation Quantity terminated pursuant to

this Section 7.3(a). Shipper will continue to have a right of first

refusal for that volumetric portion of the Transportation Quantity not

terminated pursuant to this Section 7.3(a).