Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 03/14/2010, Docket: RP10-375-000, Status: Effective

Second Revised Sheet No. 407 Second Revised Sheet No. 407

Superseding: First Revised Sheet No. 407

RATE SCHEDULE FTS

(Continued)

3.3 In the event that the service agreement is effective on a date other than the first Day

of the Month, then, for that initial Month, the Reservation Charge hereunder shall be

prorated based on the ratio of the number of Days remaining in that Month starting with

and including the effective date of the service agreement to the total number of Days

in the Month in which the initial service occurs. A similar proration shall be made

for the last Month of the term of the FTS Service Agreement if the last Day of such

term occurs on a Day other than the last Day of a Month.

3.4 The rates hereunder shall be adjusted to reflect the cost of each system expansion for

transportation services completed pursuant to FERC certificate authorization in Docket

Nos. CP82-446-002 and CP82-446-003.

3.5 Except as provided in Section 3.6 of this Rate Schedule, in the event Pipeline fails to

deliver on any one Day at least 95% of the Quantity of Gas requested to be delivered by

Pipeline at Point(s) of Delivery which Pipeline is obligated to deliver on a firm basis

at such Point(s) of Delivery on such Day up to the MDQ, the Reservation Charge shall be

decreased by the amount of the Reservation Charge Adjustment (as set forth on the

Statement of Rates for Rate Schedule FTS of Pipeline's FERC Gas Tariff, Volume No. 1,

as such Statement of Rates may be revised, superseded or supplemented from time to

time) multiplied by the Quantity of Gas not delivered up to the lesser of the total

Quantity of Gas requested and not delivered, or the MDQ.

3.6 Pipeline shall not be obligated to adjust the Reservation Charge pursuant to Section

3.5 when Pipeline's failure to deliver on any one Day at least 95% of the Quantity of

Gas requested by Customer to be delivered at Point(s) of Delivery which Gas Pipeline is

obligated to deliver on a firm basis at such Point(s) of Delivery on such Day up to the

MDQ:

(A) is the result of the conduct of Customer or the downstream operator of the

facilities at the Point of Delivery;

(B) is the result of Pipeline having operational flow orders in effect on such Day;

(C) is the result, during the period from May 1 through November 1 of any year, of

Pipeline performing routine operational maintenance and repair;

(D) is the result of Pipeline performing at anytime repair and maintenance of its

facilities to comply with applicable regulatory requirements, or

(E) occurs either (1) within ten (10) Days following a force majeure event as

contemplated by Section 17.1 of the General Terms and Conditions, or (2) prior

to the date Pipeline has or should have, in the exercise of due diligence,

overcome the force majeure event, whichever occurs first.

provided, however, 3.6(C) and 3.6(D) are also subject to the notice and due diligence

requirements of Section 17.3 of the General Terms and Conditions.