Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 27-003, Status: Effective

Original Sheet No. 26 Original Sheet No. 26 : Superseded

RATE SCHEDULE FT (Continued)

5. RATE AND CHARGES

5.1 Applicable Rates: The applicable rates for service under

the Rate Schedule FT are the applicable Maximum Reservation

and Commodity Rates shown on the effective Tariff Sheet No.

4; provided, however, Transporter has the right at any time

and from time to time to adjust the Maximum Reservation and

Commodity Rates applicable to any service upon notice to

Shipper to any level not less than the Minimum or more than

the Maximum Reservation and Commodity Rates established

for this Rate Schedule and set forth on the effective

Tariff Sheet No. 4.

Transporter shall file with the Commission the reports

required under Section 284.7 of the Commission's

Regulations for any adjustment below the maximum rates for

service under this Rate Schedule.

Authorized Overrun Quantities: Transportation by

Transporter of Authorized Overrun Quantities shall be at

a rate equal to the current maximum applicable commodity

rate for Interruptible transportation under Rate Schedule

IT.

5.2 New Facilities Charge: In addition to the charge pursuant

to Section 5.1 of this Rate Schedule, Transporter shall or

may, at its option, subject to Shipper's prior agreement,

charge Shipper an amount to recoup the cost of facilities

constructed at the Shipper's request in order to provide

transportation service under this Rate Schedule.

Transporter shall not use the amounts so collected in

establishing its general system rates. The applicable New

Facilities Charge shall be stated in the FT Contract.

Transporter will construct only those facilities to render

transportation services hereunder which interconnect with

facilities that either cross or are immediately adjacent

to Transporter's existing facilities; provided, however,

Transporter shall not construct facilities hereunder which

will result in the expansion or diminishment of

Transporter's mainline capacity or which compromise the

operational integrity of Transporter's pipeline system.

Transporter will own and operate all facilities

constructed hereunder.