Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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

Fourth Revised Sheet No. 559 Fourth Revised Sheet No. 559

Superseding: Third Revised Sheet No. 559

GENERAL TERMS AND CONDITIONS

(Continued)

(E) Notwithstanding any provision of Section 4.2(D), however, Customer shall not be

entitled to relief under Section 4.2(D): (1) to the extent that the emergency

situation is due to the Customer's failure to have adequate transportation

arrangements in effect for the delivery of Customer's Gas at the Point(s) of

Delivery in effect hereunder during the relevant period, or (2) to the extent

that the Quantity of Gas required to meet such emergency situation exceeds such

Customer's firm contractual rights hereunder.

(F) If Pipeline is requested to invoke Section 4.2(D) then such requesting

Customer's bill for such Month shall be adjusted by the amount equal to the

aggregate curtailment adjustment quantity requested by the Customer pursuant to

Section 4.2(D) multiplied by the Reservation Charge Adjustment for the

applicable rate schedule per Dth for the applicable Zone. All revenues

attributable to such adjustment shall be credited, on a pro rata basis, based on

each Customer's additional curtailment quantity due to the emergency, divided by

the aggregate of all Customer's curtailment quantity due to the emergency

situation to those Customers curtailed to a lower quantity as a result of the

emergency situation.

(G) Curtailment Compliance:

(1) [Reserved for Future Use]

(2) All quantities tendered to Pipeline and/or taken by Customer in violation

of Pipeline's curtailment or interruption orders shall constitute

unauthorized receipts or deliveries for which a curtailment penalty equal

to three times the daily Gas Daily posting for the Day on which the

violation occurred for the high "Common" price for the geographical

region, as defined in Section 8.5(A) of the General Terms and Conditions,

in which the deviation occurred, multiplied by the quantity by which the

Customer or point operator deviated from the curtailment or interruption

order, shall be assessed.

(3) Any penalty revenue collected by Pipeline pursuant to this Section 4.2(G)

will be credited to those Customers that did not incur penalties pursuant

to this Section 4.2(G) in the Month for which penalty revenues were

received ("Non-Offending Customers"), based on the ratio of the

Reservation and Usage Charges paid during that Month by the Non-Offending

Customer to the Reservation and Usage Charges paid during that Month by

all Non-Offending Customers. Such credits shall be calculated for each

Month of the twelve (12) Month period ending August 31 of each year, and

will be included on the Non-Offending Customers' invoice for the Month

following the date of the final Commission's order approving Pipeline's

penalty disbursement report; provided however that Pipeline will

calculate and