Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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

Eighth Revised Sheet No. 507 Eighth Revised Sheet No. 507

Superseding: Seventh Revised Sheet No. 507

GENERAL TERMS AND CONDITIONS

(Continued)

1. Definitions (continued)

The term "Replacement Customer" shall mean any entity which submitted a bid pursuant to

Section 3.13 of the General Terms and Conditions or executing a Capacity Release

Umbrella Agreement with Pipeline to participate in Section 3.14 of the General Terms

and Conditions.

The term "ROFR Agreement" shall mean a firm service agreement under one of Pipeline's

Open-Access Rate Schedules contracted for service for twelve (12) consecutive months or

more at the applicable maximum rate for that service, except that a contract for more

than one (1) year, for a service which is not available for twelve (12) consecutive

months, would be subject to the right of first refusal; provided however no service

agreement which when initially executed by Customer is subject to a future capacity

commitment to a third party or which has been reserved by Pipeline pursuant to Section

3.11(A)(10) of the General Terms and Conditions shall qualify as a ROFR Agreement.

Further, Pipeline may agree, on a not unduly discriminatory basis, that a firm service

agreement subject to a negotiated or discounted rate shall qualify as a ROFR Agreement.

In the event that Pipeline agrees that the firm service agreement subject to a

negotiated or discounted rate qualifies as a ROFR Agreement, such negotiated or

discounted rate agreement shall expressly provide that the agreement qualifies as a

ROFR Agreement.

The term "Short-Term Service Agreement" shall mean a service agreement containing a

primary term of less than one (1) year from the effective date of the service

agreement.

The term "Southern Route Summer Capacity Factor" as used in the FTS-4 and FTS-5 Service

Agreements shall be equal to .9589 during the period beginning April 1 of each calendar

year and continuing through November 14 of that year for Quantities of Gas received at

the Station 23 (Chambersburg) Point of Receipt for Customer's account.

The term "Storage Inventory" shall mean the Quantity of Gas in storage for Customer's

account at any given time, up to Customer's MSQ, pursuant to the applicable rate

schedule and executed service agreement.

The term "Suspense Gas" shall mean any Quantity of Gas received by Pipeline at a Point

of Receipt which Pipeline cannot identify under an existing service agreement with

Pipeline.

The term "Systematic Rescheduling" shall identify the procedure by which the allocation

of capacity between all Customers' rate schedules and contracts is revised in

accordance with service priority as a result of a change in nomination by one or more

Customers. The procedure includes, but is not limited to, (1) identifying affected

Customers and contracts, (2) recalculating Customer service levels, (3) calculating

individual Customer and aggregate Customer flows at each affected Receipt and Delivery

Point, and (4) confirming revised volumes with each Customer and Receipt or Delivery

Point operator.

The term "Third Party Account Administrator" or "3PAD" shall mean a Title Transfer

Tracking Service Provider other than Pipeline.

The term "Title Transfer" shall mean the change of title to Gas between parties at a

location.

The term "Title Transfer Tracking" shall mean the process of accounting for the

progression of title changes from party to party that does not effect a physical

transfer of the Gas.