Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 11/16/2009, Docket: RP10-623-000, Status: Effective

First Rev Sixth Revised Sheet No. 538 First Rev Sixth Revised Sheet No. 538

Superseding: Sub Fifth Revised Sheet No. 538

GENERAL TERMS AND CONDITIONS

(Continued)

(e) Unless other arrangements are agreed upon by Pipeline and the Replacement

Customer, any portion of the Replacement Customer's Storage Inventory not

withdrawn or transferred as specified in this Section 3.14(G)(4) shall be

cashed out via a payment by Pipeline to the Replacement Customer based on

the average of the lowest weekly Spot Index Prices for the four Access

Area Zones, as determined pursuant to Section 8.5(C)(3) of these General

Terms and Conditions, during the last thirty (30) Days of the term of the

release transaction, or such shorter time period if (i) the term of the

release transaction is less than thirty (30) Days, or (ii) the Replacement

Customer was unable to utilize its replacement contract for the full term

of such replacement contract due to a recall of the capacity by the

Releasing Customer.

(H) Billing:

(1) Pipeline will bill the Customer releasing capacity the amount it is

obligated to pay Pipeline for (1) Reservation Charges, reservation

surcharges, other fixed costs and (2) Usage Charge(s), volumetric

surcharges, Overrun Charges, Excess Charges, imbalances and/or other

volumetric costs attributable to any capacity retained by such Customer

and Pipeline shall credit the bill of the Customer releasing capacity an

amount equal to the Reservation Charges, surcharges and/or other fixed

cost attributable to capacity rights released by such Customer,

(hereinafter called "Credit Back"); provided, however, Pipeline shall have

the right to reverse such Credit Back and to charge applicable carrying

charges calculated in accordance with Section 154.501(d) of the

Commission's Regulations to the Customer in the event Pipeline is not paid

such charges for the released capacity.

(2) Notwithstanding the foregoing, Pipeline shall be entitled to retain an

agreed upon amount of any applicable Credit Back to be credited to a

Customer when Pipeline, at the request of Customer and upon reaching an

agreement with Customer therefore, takes other action to market such

Customer's released capacity beyond posting the information on the LINK®

System and through electronic data interchange and locates the Replacement

Customer. Pipeline will not be compensated if it does not locate the

Replacement Customer, such as where the Customer has a prearranged deal or

where a Replacement Customer accepts a posted Customer's Notice without

Pipeline actively marketing that released capacity.

(3) For releases that become effective on or after July 30, 2008, the rate

paid by a Replacement Customer in any capacity release transaction with a

term of one (1) year or less which is not subject to the maximum rate cap

will be deemed to be a final rate and is not subject to refund if the

effective date of the release is on or before one (1) year from the date

on which Pipeline was notified of the release.

(I) Capacity Assignment:

Once the conditions of this FERC Gas Tariff are met and the terms and conditions

specified in the Customer's Notice are met, Replacement or Prearranged Customer

and Pipeline will tender an applicable Addendum to the Capacity Release Umbrella

Agreement and the Replacement or Prearranged Customer will be considered as any

other existing Customer on Pipeline's system, subject to the re-release rights

specified by Releasing Customer pursuant to Section 3.14(D)(1)(m) above.