Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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

Third Revised Sheet No. 581 Third Revised Sheet No. 581

Superseding: Second Revised Sheet No. 581

GENERAL TERMS AND CONDITIONS

(Continued)

8. IMBALANCE RESOLUTION PROCEDURES

It is the Cash-out Party's responsibility to provide accurate and timely nominations of

quantities proposed to be received and delivered by Pipeline under all of Cash-out Party's service

agreements; to maintain each Day as nearly as practicable equality between quantities actually

taken under each service agreement and scheduled quantities under each service agreement; and to

maintain a concurrent balance between receipts and deliveries under each of Cash-out Party's

service agreements.

8.1 Resolution of Monthly Imbalances. During the Month, Cash-out Party may use any or all

Imbalance Management Services, as defined in Section 1 of the General Terms and

Conditions, to reduce or eliminate the cash-out exposure for a monthly imbalance. In

addition, Cash-out Party may trade an imbalance with another Cash-out Party, in

accordance with Section 8.3 below, until the close of the seventeenth Business Day

after the end of the Month during which the imbalance occurred. Any imbalance(s) not

resolved via any of the Imbalance Management Services will be resolved via the cash-out

mechanism set forth in Section 8.5.

8.2 Imbalance Management Services. The Imbalance Management Services offered by Pipeline

are identified in Section 1 of the General Terms and Conditions. Details of each

service are included in the Rate Schedule and Form of Service Agreement contained in

this tariff, or in this Section 8.

8.3 Imbalance Trading. Pipeline shall allow Cash-out Parties to trade imbalances within

the same Operational Impact Area, or between Operational Impact Areas, as defined in

Section 1 of the General Terms and Conditions, if the two Cash-out Parties' imbalances

are offsetting balances for the Month, such that the net imbalance for each Cash-out

Party after the completion of the trade would be reduced to a quantity closer to zero.

A Cash-out Party may trade any imbalance with another Cash-out Party, provided that the

trade shall not require transportation through a Posted Point of Restriction, as

defined in Section 1 of the General Terms and Conditions, posted on the Days the

imbalance occurred. Trading imbalances across a Posted Point of Restriction will be

allowed if, on the Days the imbalances occurred, the transaction would offset

Pipeline's Daily System Imbalance such that the imbalance downstream of the Posted

Point of Restriction is due Shipper and the imbalance upstream of the Posted Point of

Restriction is due Pipeline. The Cash-out Party with an imbalance resulting from

receipts from Cash-out Party in excess of deliveries by Pipeline will reimburse

Pipeline for any difference in transportation revenues that may result from such

trading. Any trades across Operational Impact Areas are subject to payment of the Zone

transportation differential pursuant to an executed service agreement.

Pipeline will provide the ability to post and trade imbalances at any time during the

Gas flow Month, and until the close of the seventeenth Business Day after the end of

the Month during which the imbalances occurred. To facilitate the trading process,

Pipeline will, upon receipt of Cash-out Party's authorization, post a Cash-out Party's

imbalance quantity on its Web site. Authorizations to Post Imbalances that are

received by Pipeline by 11:45 a.m. will be effective by 8:00 a.m. the next Business Day

(central clock time). An Authorization to Post Imbalances will remain in effect until

cancelled by the Cash-out Party. Imbalances previously authorized for posting will be

posted as they become available, but no later than the ninth Business Day of the Month;

however, Pipeline will not be required to post zero imbalances. The information posted

will identify the Cash-out Party, the Operational Impact Area and the Gas flow Month