Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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

Third Revised Sheet No. 583 Third Revised Sheet No. 583

Superseding: Second Revised Sheet No. 583

GENERAL TERMS AND CONDITIONS

(Continued)

8.5 Cash-out Provision

It is the responsibility of the Cash-out Party to eliminate any end-

of-Month imbalance quantities not resolved in accordance with Section

3.3 of Rate Schedule TABS-1, Section 2.3 of Rate Schedule MBA and

Sections 8.2, 8.3 and 8.4 herein with a final resolution of such end-

of-month imbalances by cash settlement with Pipeline. Pipeline and

the Cash-out Party shall settle in cash any net imbalance remaining

between actual quantities received, adjusted for Applicable Shrinkage,

and actual quantities delivered unless otherwise mutually agreed.

Prior to or with the monthly transportation invoice, Pipeline will

render each Cash-out Party a statement detailing the unresolved

imbalance quantity and a bill for the amount due Pipeline or a credit

of the amount due Cash-out Party, as determined below. Rendered is

defined as postmarked, time-stamped and delivered to the designated

site.

(A) Determination of Index Price:

Weekly Spot Index Price(s) shall be established as set forth

below:

(1) Each week a Spot Index Price will be derived for each of

the following Zones from the following posted spot prices

as published in Natural Gas Week's "Gas Price Report"

applicable to the following geographical regions:

(a) STX Zone: Texas , Gulf Coast, Offshore, Spot

Delivered to Pipeline.

(b) ETX Zone: An average of Texas, Gulf Coast, Onshore,

Spot Delivered to Pipeline and Louisiana, Gulf Coast,

Onshore, Spot Delivered to Pipeline.

Delivered to Pipeline.

(d) ELA Zone: Louisiana, Gulf Coast, Onshore, Spot

Delivered to Pipeline.

In the event that these prices are no longer available or

valid, Pipeline will file to change its tariff and may, at

its discretion, select a representative price in the interim

period, subject to refund.

(B) Imbalance Due Pipeline:

In the event of an imbalance, when actual deliveries exceed

actual receipts, Pipeline will bill the Cash-out Party for such

excess delivery or deficiency of receipts.

(1) Each Month a Total Monthly Imbalance Percentage will be

calculated by using the lesser of the operational imbalance

level, stated as a percentage, or the actual