Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

Effective Date: 09/19/2007, Docket: RP07-590-000, Status: Effective

Fourth Revised Sheet No. 556 Fourth Revised Sheet No. 556 : Effective

Superseding: Third Revised Sheet No. 556

GENERAL TERMS AND CONDITIONS

(Continued)

4.2 Capacity Curtailment and Interruption Procedures for Storage and Transportation

Services

(A) Pipeline shall have the right to curtail, interrupt or discontinue service in

whole or in part on all or a portion of its system from time to time and at any

time (1) for reasons of force majeure or when necessary, in Pipeline's

reasonable judgment, to meet its system operating requirements or other higher

priority service obligations, (2) to perform routine maintenance, repairs, and

regulatory compliance activity as provided in Section 17 of the General Terms

and Conditions or (3) to the extent, in Pipeline's reasonable judgment,

interruptible service would impair Pipeline's ability to meet its firm service

obligations, or to render any future service that may be provided by Pipeline on

a firm basis. Pipeline will provide Customer reasonable notice of such

curtailment or interruption orders and Customer shall be permitted three (3)

hours, or such lesser time as is required to protect the integrity of Pipeline's

system, to reduce its tenders or takes in compliance with the curtailment or

interruption orders. If Customer adjusts its tenders or takes within such

notice period, then no charge or penalty provided for in this Section 4.2 shall

be assessed.

(B) In the event any services are curtailed or interrupted hereunder, Pipeline shall

reduce scheduled service, to zero if necessary, in the following order:

(1) scheduled service under Pipeline's PAL rate schedule 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;

(2) scheduled service under Pipeline's other interruptible rate schedules

commencing with service to be charged at the minimum rate of Pipeline then

in effect;