Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

Effective Date: 11/02/2009, Docket: RP10-30-000, Status: Effective

Original Sheet No. 572E Original Sheet No. 572E

GENERAL TERMS AND CONDITIONS

(Continued)

(b) Pipeline determines, based on nominations submitted

in the Timely Nomination Cycle and in Pipeline's

reasonable discretion, exercised on a not unduly

discriminatory basis, that commingling opportunities

will exist for all or part of the Exempt Receipts

sufficient for Pipeline to make deliveries of gas at

the next downstream delivery point that comply with

the requirements in GT&C Section 5.2(A), 5.3(C), and

5.3(I); and

effective specifications set forth in GT&C Section 5.

(iii) Notwithstanding the foregoing, Pipeline may decline to

schedule Exempt Receipts if such Exempt Receipts will, in

Pipeline's reasonable determination, interfere with the

operational integrity or reliability of Pipeline's system.

Any such Exempt Receipts will be rejected by Pipeline

scheduling nominations on a pro rata basis across all

points to the extent such receipts are contributing the

constituent outside the tariff limits that is causing such

operational integrity or reliability issue, as Pipeline

determines is necessary, in its reasonable discretion, in

order to resolve such issue. Pipeline will conduct any

such prorationing in a manner that will take into account

the aggregate level of the constituent that is outside the

tariff limit and the volume, which methodology will be

consistently applied.

(iv) This exemption will terminate, relative to any Exempt

Receipt Point: (i) that is permanently taken out of

service, (ii) at which gas ceases to flow for 90 or more

days in any 180 day period for reasons other than force

majeure, (iii) at which GT&C Section 5.5(C)(v) below

applies for 90 or more days in any 180 day period, or (iv)

at which Pipeline declined to schedule the entire

nomination for Exempt receipts pursuant to GT&C Section

5.5(C)(iii) above for 90 or more days in any 180 day

period.

(v) On any day, if any of the Exempt Receipts fails to meet any

of the conditions contained in subsection (ii) above, GT&C

Section 5.4 shall apply to such Exempt Receipts as if no

effective exemption applies to the receipts.