Tennessee Code Title 65. Public Utilities and Carriers § 65-28-103

(b)(1) As a pilot project through the end of the year 2003, and notwithstanding any state or local law to the contrary, any intrastate natural gas pipeline corporation, subject to regulation by the Tennessee public utility commission as a public utility, may transport natural gas to end users in Tennessee only if such natural gas is produced from Tennessee wells located in any county contained within the second, fourth, fifth, sixth, seventh or twelfth senatorial districts, and/or in the smallest county by population located in the fifteenth senatorial district, as these districts exist on June 17, 1999, and only if the end users of such natural gas are located in these counties; provided that no such pilot project shall be permitted within the chartered service area of a utility district created by private act. Such intrastate natural gas pipeline corporations shall not transport intrastate natural gas to end users that are served by a municipal utility or by a utility district or within a utility district's chartered service area on June 17, 1999, unless:

(2) At the option of the utility district or municipal utility, such intrastate natural gas pipeline may serve end users not now being served by a municipal utility or by a utility district or within a utility district's chartered service area. This subdivision (b)(2) shall not prohibit service to end users specifically authorized to be served in accordance with subdivision (b)(1)(A).

(3) Any contractual arrangements made by an intrastate natural gas pipeline corporation for transportation of natural gas pursuant to subdivision (b)(1) shall remain in effect according to their terms if such agreements are entered into, or permits are granted, during the pilot project, even though the term of such transportation agreement shall be for a longer term than the pilot project and without regard to whether the pilot project is extended or is not extended.