Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 11/16/2009, Docket: RP10-53-000, Status: Effective

Fourth Revised Sheet No. 539A Fourth Revised Sheet No. 539A

Superseding: Third Revised Sheet No. 539A

GENERAL TERMS AND CONDITIONS

(Continued)

(2) In the event that a Customer has received 30 Days' notice of termination

of the Addendum to Customer's Capacity Release Umbrella Agreement pursuant

to Section 3.14(M)(1) above for storage service and there is Gas in

storage for Customer's account at the end of such 30-Day period, the

Addendum shall continue in force and effect for the sole purpose of

withdrawal and delivery of said Gas to Customer until Customer's Storage

Inventory is zero. Pipeline shall require Customer to withdraw each Day a

quantity equal to the MDWQ, or such other lesser quantity acceptable to

Pipeline. The requirement to withdraw storage quantities shall be

suspended on any Day to the extent that Pipeline cannot accommodate a

nomination to withdraw such storage quantities on such Day. Customer may

also transfer title of Gas remaining in Storage Inventory to another

Customer pursuant to Section 5.2 of Rate Schedules SS-1, FSS-1, and ISS-1,

provided such other Customer has an executed service agreement under Rate

Schedule SS-1, FSS-1, or ISS-1 and that such transfer does not cause such

other Customer to exceed its MSQ specified in such service agreement. In

the event Customer fails to withdraw its entire Storage Inventory within

the time required by this section, Pipeline shall auction any remaining

Storage Inventory and credit the proceeds of such sale to Customer, net of

withdrawal charges and fuel, if applicable. Such sale shall be held

pursuant to the auction procedure in Section 8.7 of these General Terms

and Conditions. Customer shall indemnify Pipeline and hold it harmless

from all costs, damages, and liabilities arising out of the failure of

Customer to remove such Storage Inventory and the disposal of such Storage

Inventory by sale by Pipeline.

(N) Notices to Releasing Customers:

Pipeline shall provide the original Releasing Customer with Internet E-mail

notification reasonably proximate in time with any of the following formal

notices given by Pipeline to the Releasing Customer's Replacement Customer(s),

of the following:

(1) Notice to the Replacement Customer regarding the Replacement Customer's

past due, deficiency, or default status pursuant to Pipeline's tariff;

(2) Notice to the Replacement Customer regarding the Replacement Customer's

suspension of service notice;

(3) Notice to the Replacement Customer regarding the Replacement Customer's

contract termination notice due to default or credit-related issues; and

(4) Notice to the Replacement Customer that the Replacement Customer(s) is no

longer creditworthy and has not provided credit alternative(s) pursuant to

Pipeline's tariff.

(O) Permanent Capacity Releases:

To the extent that any Customer desires to release all or any part of its firm

rights under an Open-access Rate Schedule on a permanent basis, the procedures

specified in this Section 3.14 shall apply. In addition, the Replacement

Customer that will acquire the capacity from Customer must submit a request for

service electronically via the LINK® System and provide the credit information

as required by Section 3.3 herein. For any permanent capacity release, the

minimum bid acceptable to Pipeline shall be a bid for the remainder of the term

of Customer's service agreement at the rate(s) Customer is obligated to pay

Pipeline for the capacity to be permanently released. Pipeline may refuse to

allow a permanent capacity release if it has a reasonable basis to conclude that

it will not be financially indifferent to the release. If Customer's request to

permanently release capacity is denied by Pipeline, Pipeline shall notify

Customer via e-mail and shall include in the notification the reasons for such

denial.