Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-70-001, Status: Effective

Sub Fourth Revised Sheet No. 535 Sub Fourth Revised Sheet No. 535

Superseding: Fourth Revised Sheet No. 535

GENERAL TERMS AND CONDITIONS

(Continued)

(F) "Best Bid":

For releases that become effective on or after July 30, 2008, potential

Replacement or Prearranged Customers may submit bids in excess of the maximum

tariff rate for the applicable service if (i) the term of the proposed release

is one (1) year or less, and (ii) the effective date of the proposed release is

on or before one (1) year from the date on which Pipeline is notified of the

release. Such rate will be utilized in the determination of the "best bid."

The "best bid" shall be determined in accordance with the bid evaluation method

specified by the Customer pursuant to Section 3.14(D)(1)(i). However, Pipeline

shall reject any bid which does not meet the minimum term or any other minimum

specifications set forth in Customer's Notice. If pursuant to Section

3.14(D)(1)(h) Customer states the minimum Reservation Charge on a percentage

basis of the maximum rate, bids shall be received on a percentage basis of the

maximum rate. For all releases, the usage portion of the rates is determined by

the Pipeline and the Replacement or Prearranged Customer and as such will not be

taken into consideration when determining the "best bid". In addition, Pipeline

shall reject any bid that contains contingent provisions that are inconsistent

with the provisions of this FERC Gas Tariff.

In the event that Prearranged Customer desires to exercise its right to match

the "best bid," Prearranged Customer must notify Pipeline via the LINK® System.

Pipeline shall not award capacity release offers to the Replacement Customer

until and unless the Replacement Customer meets Pipeline's creditworthiness

requirements applicable to all services it receives from Pipeline, including the

service represented by the capacity release.

(G) Obligations of All Parties:

(1) Obligation of Pipeline

Pipeline will be required pursuant to Section 2 of the General Terms and

Conditions to provide the LINK® System for access by Customers,

Replacement Customers or Prearranged Customers participating in this

Section 3.14 and to otherwise comply with the provisions of this section.

If the Replacement or Prearranged Customer satisfies the Pipeline's

applicable tariff provisions governing Customer eligibility and its bid is

accepted by Pipeline, Pipeline shall notify a Customer in accordance with

the notification requirements specified in Section 3.14(N) of these

General Terms and Conditions in the event such Replacement or Prearranged

Customer fails to pay part or all of the amount of any bill for service

provided when such amount is due in accordance with Section 10 of the

General Terms and Conditions. Pipeline will tender an appropriate

Addendum to the Capacity Release Umbrella Agreement, a Form of Service

Agreement of which is contained in this FERC Gas Tariff, to the

Replacement or Prearranged Customer. Pipeline will notify the Customer

with recall rights of the name of new Replacement Customers who

subsequently obtain all or a portion of such capacity after the Addendum

to the Capacity Release Umbrella Agreement is tendered to the Replacement

Customer. In those instances when the Commission determines that Pipeline

charged more than the just and reasonable rate and requires