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

Third Revised Sheet No. 538A Third Revised Sheet No. 538A

Superseding: Second Revised Sheet No. 538A

GENERAL TERMS AND CONDITIONS

(Continued)

(J) Release of Discrete Packages:

In addition to releasing a portion of all capacity rights under

a firm service agreement under Rate Schedules CDS, FT-1, MLS-1,

SS-1, FSS-1 and SCT, capacity rights under Rate Schedules CDS,

FT-1, MLS-1 and SCT may be released in discrete packages

representing all or a fraction of the firm capacity rights of

the service agreement in any segment of Pipeline's system,

subject to the requirement that the release or multiple releases

do not increase the total contractual entitlements (including,

without limitation, the MDQ, MDRO or MDDO) above the contractual

entitlements of the original firm service agreement in any

segment or at any point. The right to segment is subject to the

requirement that aggregate Quantities of Gas received,

transported or delivered under a Customer's service agreement,

and, if such service agreement is the result of capacity

release, the aggregate Quantities of Gas received, transported

or delivered by all other Customers utilizing capacity rights

derived from the original firm service agreement, shall not

exceed the contractual entitlements under such original firm

service agreement in any segment. In addition to releasing a

portion of all capacity rights under a firm service agreement

under Rate Schedules LLFT and VKFT capacity rights under Rate

Schedules LLFT and VKFT may be released in discrete packages

representing all or a fraction of the firm capacity rights of

the service agreement.

Capacity under Rate Schedule SS-1 may be released as a bundled

transportation and storage service or separately released as

discrete transportation and storage components under Rate

Schedules FT-1 and FSS-1, respectively. For purposes of

determining the maximum and minimum Reservation Charge rates

which may be bid on discrete packages, the maximum and minimum

rates shall be determined by reference to Section 3.2 or 3.3 of

the applicable Rate Schedule, as applicable, to the proposed

capacity release. The Reservation Charge rate shall include the

specified Reservation Charge rate and any applicable surcharges.