Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

Effective Date: 11/16/2009, Docket: RP10-53-000, Status: Effective

Second Revised Sheet No. 301 Second Revised Sheet No. 301

Superseding: Sub First Revised Sheet No. 301

RATE SCHEDULE TABS-1

(Continued)

2.3 Allocation methodologies shall be required from the TABS-1 Party for the TABS-1 Service

Points in accordance with Section 18.2 of Pipeline's General Terms and Conditions.

2.4 Nothing herein shall limit Pipeline's right to take action as may be required to adjust

receipts of Gas in order to alleviate conditions which threaten the integrity of its

system, including actions taken pursuant to Sections 4 and 17 of Pipeline's General

Terms and Conditions.

3. IMBALANCE RESOLUTION

3.1 It is the intent of the parties that the daily Quantities of Gas received into and

scheduled out of each TABS-1 Service Point for each Day will balance. However, the

parties recognize that operational variances may occur. Based on the information

available Pipeline will provide notice to the TABS-1 Party of any imbalance situation

which has occurred or may occur unless corrective action is taken.

3.2 Daily Imbalances Upon notification by Pipeline of a daily imbalance situation, the

TABS-1 Party shall, within a reasonable time as specified at the time of notification

by Pipeline in its reasonable judgment taking into account Pipeline's system operating

conditions and other considerations as may be a result of such imbalance, provide

Pipeline any information necessary to adjust receipts of Gas under this Rate Schedule

TABS-1 and/or deliveries of Gas for the account of TABS-1 Party under the applicable

transportation contracts, or elect and implement one or more of the options listed in

this Section 3.2 in order to maintain or restore a daily balance between actual

receipts and scheduled quantities. TABS-1 Party shall have the option under this Rate

Schedule to resolve all or any fraction of the imbalance, provided that such option

does not require transportation through a Posted Point of Restriction for the Day, as

follows:

(A) Exchange an imbalance due Pipeline allocated to a TABS-1 Service Point under its

TABS-1 Service Agreement with a balance due another TABS-1 Party allocated to the

same TABS-1 Service Point under another TABS-1 Party's TABS-1 Service Agreement,

pursuant to the Imbalance Trading provision set forth in Section 8.3 of the

General Terms and Conditions. In addition, (a) upon request of the TABS-1 Party

and (b) subject to Section 2.7 of the General Terms and Conditions, Pipeline will

post on the LINK® System information regarding the TABS-1 Party's imbalance.

(B) Transport an imbalance due a TABS-1 Party at one TABS-1 Service Point under a

TABS-1 Service Agreement to an imbalance due Pipeline allocated to another TABS-1

Service Point. Transport of imbalances shall be accomplished by adjustments to a

daily transportation nomination pursuant to the TABS-1 Parties' executed

transportation service agreements.