East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 11/01/1996, Docket: RP97- 13-000, Status: Effective

First Revised Sheet No. 116 First Revised Sheet No. 116 : Superseded

Superseding: Original Sheet No. 116




(iii) maximum reservation charge as set forth in the Summary of

Rates and Charges in Transporter's Tariff;


(iv) any applicable restrictions; and


(v) the last day of the Bidding Period.


(2) Upon conclusion of the Bidding Period, Transporter shall

evaluate the bids in accord with the present value formula set

forth in Section 17.7(b) for firm transportation or Section

18.7(b) for LNGS service for the evaluation of bids under

Transporter's capacity release mechanisms; provided that the

term used for purposes of the formula will be the lesser of the

term proposed by the Bidder or twenty years; and provided

further that any bid rate higher than the maximum applicable

rate shall be deemed to be a bid equal to the maximum applicable



(3) Within 5 days of the close of the Bidding Period, Transporter

shall notify Shipper of the bid having the highest present value

to Transporter ("Highest Bid"). Shipper shall have 25 days

after receiving notice to notify Transporter as to whether it

will match the highest bid. If the Shipper elects to match the

highest bid, prior to the termination of its existing long term

firm service agreement, it must execute a new service agreement

that contains the terms of that Bid; provided, however, that

Shipper shall not be required to pay any rate higher than the

maximum applicable rate.


(4) If Transporter receives no bids on the capacity, then Shipper

may continue to receive service at the maximum rate on a month-

to-month basis or such other rate and/or term as Transporter and

Shipper mutually agree. A Shipper who continued service under

such basis shall retain its right of first refusal.




8.1 All storage capacity on Tennessee Gas Pipeline Company ("Tennessee")

previously held by Transporter under Rate Schedule FSS ("Tennessee Storage"),

and all storage capacity on Consolidated Natural Gas Company ("CNG")

previously held under Rate Schedule GSS-I ("CNG Storage") shall be allocated

and assigned to Shippers that were firm sales customers of Transporter on

July 1, 1992.


8.2 Determination of Storage Allocation Factor: Each Shipper's Storage

Allocation Factor ("SAF") will be determined as follows:


(a) For Shippers that are not directly connected to any interstate pipeline

other than Transporter, the SAF will be determined according to the

following formula: