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

Ninth Revised Sheet No. 501 Ninth Revised Sheet No. 501

Superseding: Eighth Revised Sheet No. 501

GENERAL TERMS AND CONDITIONS

(Continued)

1. DEFINITIONS

Except where the context otherwise indicates another or different meaning or intent, the

following terms when used herein or in any agreement incorporating the General Terms and

Conditions are intended and used and shall be construed to have meanings as follows:

The term "Access Area" shall mean the portion of Pipeline's system located upstream of

the suction side of Little Rock, Arkansas, and upstream of the suction side of

Kosciusko, Mississippi.

The term "Access Area Boundary" (AAB) shall mean the location(s) on Pipeline's system

represented by the facilities at the suction side of Little Rock, Arkansas, and by the

facilities at the suction side of Kosciusko, Mississippi.

The term "Administrator" shall be the party designated by the Principals to act on

their behalf under a Multiple Shipper Option Agreement.

The term "Aggregate Maximum Daily Delivery Obligation" (AMDDO) shall mean the aggregate

maximum daily quantity of gas which Pipeline is obligated to deliver on a primary firm

basis to one or more indicated Point(s) of Delivery concurrently pursuant to one or

more contracts with an MDDO at such Point(s) of Delivery.

The term "Aggregate Maximum Daily Receipt Obligation" (AMDRO) shall mean the aggregate

maximum daily quantity of gas which Pipeline is obligated to receive on a primary firm

basis at one or more indicated Point(s) of Receipt concurrently pursuant to one or more

contracts with an MDRO at such Point(s) of Receipt, exclusive of any Applicable

Shrinkage.

The term "Applicable Billing Determinants" for purposes of Rate Schedules CDS, FT-1 and

SCT shall mean: (1) for Market Area service the Transportation Path Quantity for the

capacity reserved in the Market Area, as set forth in the executed service agreement;

(2) for Access Area service the Total Base Segment Capacity Entitlements (prorated to

Rate Schedules CDS, FT-1 and SCT based on Customer's Market Area MDQ for such rate

schedules) for each zone in the Access Area pursuant to Section 9 of the General Terms

and Conditions, for capacity reserved in the Access Area in conjunction with Market

Area capacity; and (3) for capacity releases pursuant to Section 3.14 of the General

Terms and Conditions and/or other transactions solely in the Access Area the

Transportation Path quantity as specified in the executed service agreement.

The term "Applicable Shrinkage" shall mean the quantity of gas payable by Customer and

retained by Pipeline as compensation for gas used by Pipeline in providing services for

Customer. These quantities of gas shall include, fuel and company use gas, gas lost as

a result of processing and plant thermal reduction and force majeure. Applicable

Shrinkage for each service transaction shall be calculated as the product of the

effective Applicable Shrinkage Percentage times the applicable quantity of service

rendered: (1) for transportation service, the quantity delivered after any forwardhaul

transportation, (2) for storage injections, the quantity injected (3) for storage

withdrawals, the quantity withdrawn and (4) for storage inventory, the average daily

balance of gas stored during the month. The effective Applicable Shrinkage Percentages

shall be set forth on the Statement of Rates for Percentages for Applicable Shrinkage

and shall be subject to change from time to time as provided in Section 15 of these

General Terms and Conditions or as set forth for the applicable incremental service on

the Statement of Rates for each applicable rate schedule. Applicable Shrinkage for

transportation transactions consisting solely of backhaul transportation shall be zero.

The term "Base Segment Capacity Entitlement" for purposes of Rate Schedules CDS, FT-1

and SCT shall be as set forth in the LINK® System pursuant to Section 9 of the General

Terms and Conditions.

The term "British Thermal Unit" (Btu) shall mean the amount of heat required to raise

the temperature of one (1) avoirdupois pound of pure water from 58.5øF to 59.5øF under

standard conditions.