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

Second Revised Sheet No. 521 Second Revised Sheet No. 521

Superseding: Sub First Revised Sheet No. 521

GENERAL TERMS AND CONDITIONS

(Continued)

(10) In addition to the procedures set forth in this Section 3.11(A), Pipeline

shall have the right, but shall not be obligated, from time to time to hold

open seasons for potential expansion projects or for available capacity for

which no request has been received. During any such open season, Pipeline

shall allocate the capacity subject to such open season on the basis of the

highest net present value to Pipeline, as determined pursuant to the method

described in Section 3.11(A)(1). In this connection, to the extent

Pipeline has available unsubscribed capacity, Pipeline reserves the right,

but shall not be obligated, to reserve such capacity for a future expansion

open season provided that any such open season is conducted by the later of

one (1) year from the date Pipeline posts such capacity as being reserved

or the date such reserved capacity actually becomes available for use.

(B) Pipeline will post available capacity before it provides such information to any

potential Customer.

maximum rate, (ii) which may detrimentally impact the operational integrity of

Pipeline's system, (iii) which does not satisfy all the terms of a specific

posting and/or (iv) which contains terms and conditions other than those

contained in Pipeline's FERC Gas Tariff. If Pipeline rejects any request for

available capacity posted pursuant to Section 3.11(B), Pipeline will notify

Customer via e-mail of its reason(s) for such rejection.

(D) All requests received during an open season remain binding on the requesting

party through the end of the open season, unless withdrawn by the requesting

party prior to the close of the open season; provided, however, a requesting

party may withdraw its previous request and submit a request with a higher net

present value during the open season, but neither the requesting party nor an

affiliate thereof may submit a request with a lower net present value during the

open season. At the end of the open season, all requests either withdrawn or

not accepted shall be deemed null and void. If the winning bid is submitted by

the requesting party and the requesting party has complied with the requirements

of Sections 3.2 and 3.3 above, such winning bid shall be binding on the

requesting party and a service agreement shall be executed pursuant to the

requirements of Section 3.12 of these General Terms and Conditions; in the event

Customer does not execute the service agreement as required by Section 3.12,

Customer shall nonetheless be bound by the terms of its winning bid and the

provisions of such service agreement as though it had been fully executed. In

the event the winning bidder is not the requesting party, Pipeline shall

automatically create a Request for Service on behalf of the winning bidder, and

the winning bidder shall be required to comply with the provisions of this

Section 3; if the winning bidder does not execute the service agreement as

required by Section 3.12, such winning bidder shall nonetheless be bound by the

terms of its winning bid and the provisions of such service agreement as though

it had been fully executed. If Pipeline is unable to approve the winning

bidder's Request for Service, the capacity shall be awarded to the party that

submits the next highest bid for the posted capacity, subject to the

requirements of Sections 3.2 and 3.3 above, unless, within one (1) Business Day

of notification of the award of capacity, such party provides Pipeline with

written notification that it rejects such award.