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

Fourth Revised Sheet No. 536 Fourth Revised Sheet No. 536

Superseding: Third Revised Sheet No. 536

GENERAL TERMS AND CONDITIONS

(Continued)

refunds, Pipeline will work out refunds with and among the various parties

with whom it dealt in the capacity release situation, and pending such

resolution with the various parties shall deposit such refunds in an escrow

account.

(2) Obligations of Customer

The service agreement of the Customer will remain in full force and effect,

with a portion of the proceeds attributable to any release credited to the

existing Customer's bill as provided in Section 3.14(H). The Customer

shall remain ultimately liable to Pipeline for all Reservation Charges and

Reservation Surcharges under the terms of its service agreement with

Pipeline. Under Negotiated Rate agreements, the Releasing Customer is

obligated to pay the Pipeline the difference by which the Negotiated Rate

exceeds the rate paid by the Replacement Customer. Under Negotiated Rate

agreements, Pipeline and the Releasing Customer may agree upon payment

obligations and crediting mechanisms which vary from or are different from

those set forth in Pipeline's capacity release provisions. However, no new

obligation or liability is created as a result of such assignments of the

rights and obligations under the service agreement.

If Pipeline waives any credit requirements for a Prearranged Customer or a

Replacement Customer, Pipeline shall limit the liability of the Customer to

the extent of such credit waiver, unless Customer agrees to the waiver. To

the extent Pipeline does not require continuing assurances of

creditworthiness under Section 3.5 of the General Terms and Conditions for

Prearranged Customers or Replacement Customers any less than it does its

Customer, Customer continues to be liable.

For Customers under Rate Schedule SS-1 who elect, under Section 2.5 of Rate

Schedule SS-1, to convert all or a portion of their service to service

under Rate Schedule FT-1 and FSS-1 for the duration of the capacity

release, such SS-1 Customer shall be liable for all Reservation Charges and

reservation surcharges, attributable to such released quantity. The

Replacement or Prearranged Customer shall be liable to Pipeline for all

charges incurred by such Replacement or Prearranged Customer, such as the

Usage Charge(s), volumetric surcharges, Overrun Charges, Excess Charges,

imbalances or other volumetric costs. In the event there is a permanent

release of Customer's capacity pursuant to Section 3.14(O) of these General

Terms and Conditions, Pipeline will agree to discharge the Customer of

liability, on a prospective basis, in whole or in part.

Any Customer retaining the right of recall must provide notification via

the LINK® System to Pipeline in accordance with the notice requirements set

forth in Section 3.14(D)(4) herein, provided such recall conforms to the

recall terms of such Customer's Notice and such recall does not constitute

a waiver or modification of Section 4 of Pipeline's General Terms and

Conditions. Any Customer may exercise a right of recall, subject to the

provisions herein, in the event a Replacement or Prearranged Customer fails

to pay part or all of the