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

Second Revised Sheet No. 589 Second Revised Sheet No. 589

Superseding: First Revised Sheet No. 589

GENERAL TERMS AND CONDITIONS

(Continued)

imbalance remaining at the end of the extended period will be subject to the

Cash-out provisions of this Section 8.

(F) Disposition of Cash-out Quantities:

Pipeline, at its discretion, may dispose of the net excess quantities purchased

under this Section 8.5 in accordance with the procedures contained in Section

8.7 of the General Terms and Conditions.

(G) Disposition of Cash-out Proceeds:

Pipeline, at its discretion, may use proceeds received from Cash-out of

imbalances due Pipeline pursuant to Section 8.5(B) to purchase at any time and

from time to time Quantities of Gas.

(H) Disposition of Net Cash-out Proceeds:

Pipeline shall credit to the Applicable Shrinkage Deferred Account as provided

in Section 15.6(D)(1) herein, the net proceeds from the operation of the

imbalance resolution procedures contained in this Section 8. Such net proceeds

shall be credited on a monthly basis.

(I) [Reserved for Future Use]