Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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

Sixth Revised Sheet No. 554 Sixth Revised Sheet No. 554

Superseding: Fifth Revised Sheet No. 554

GENERAL TERMS AND CONDITIONS

(Continued)

(3) among Customers receiving Excess Withdrawal Gas under Rate Schedule(s) SS,

SS-1 and FSS-1, and; among Customers under Pipeline's interruptible rate

schedules, excluding PAL, commencing with service to be charged at the

maximum rate of Pipeline then in effect on a pro rata basis according to

Customer's nominated quantities; next in order shall be service to be

charged at a rate that is less than the maximum rate of Pipeline then in

effect, in sequence beginning with the rate most proximate to the maximum

rate, such determination to be based on the percentage of discount from

the applicable maximum rate and within each of these rate categories on a

pro rata basis according to Customer's nominated quantities. In addition,

Customer may elect to pay the applicable maximum rate at the time Customer

submits its nomination in accordance with Section 4.1(D)(1) of these

General Terms and Conditions. In the event Customer's nomination is for

service at a rate less than the applicable maximum rate and Pipeline

determines that all timely nominations exceed available interruptible

capacity, Customer making such election will be required to pay the

applicable maximum rate, in order to have its nomination accepted and

scheduled by Pipeline to the extent interruptible capacity is available as

determined by Pipeline. Such election shall be a one time election

effective for the remainder of the Nomination Period.

(4) among Customers requesting Quantities of Gas to be scheduled for park and

loan service under Rate Schedule PAL based on net present value, with the

transaction yielding the highest net present value receiving priority over

transactions yielding a lower net present value. Net present value shall

be calculated on the basis of the present value of the daily PAL charge

per Dth to Pipeline for the term of the transaction as specified in

Exhibit A of the PAL Service Agreement. PAL transactions yielding the

same net present value shall be scheduled pro rata based on scheduled

quantities. In making the determination of net present value, Pipeline

shall apply the rate, as of the date of the review, stated in accordance

with Section 154.501(d) of the Commission's regulations, to all bids.