Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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

First Revised Sheet No. 606 First Revised Sheet No. 606

Superseding: Original Sheet No. 606

GENERAL TERMS AND CONDITIONS

(Continued)

12. POSSESSION OF GAS

12.1 Control

Pipeline shall be deemed to be in control and possession of the Gas hereunder upon

receipt of such Gas until it shall have been delivered for Customer's account, and

Customer shall be deemed to be in control and possession of such Gas prior to such

receipt by Pipeline and after such delivery for Customer's account. Notwithstanding

anything in this FERC Gas Tariff to the contrary, Pipeline shall be entitled to deliver

and utilize Gas in its system to provide No-notice Service under Rate Schedules CDS,

SCT, SS-1, FSS-1 and ISS-1, subject to the makeup, balancing and other provisions of

such rate schedules. Additionally, Pipeline will be permitted to operate storage and

utilize storage to render services under this FERC Gas Tariff.

12.2 Responsibility

Pipeline shall have no responsibility with respect to the Gas or on account of anything

done, occurring or arising with respect to the Gas before receipt of such Gas by

Pipeline or after delivery of the Gas for Customer's account, and Customer shall have

no responsibility with respect to the Gas or on account of anything done, occurring or

arising with respect to the Gas while such Gas is in Pipeline's possession; provided,

however, in the event any Gas flows through facilities of Customer prior to such

delivery to or for Customer's account, Pipeline shall have no responsibility with

respect to such Gas or on account of anything which may be done, happen or arise with

respect to such Gas while in the facilities of Customer.

13. WARRANTY OF TITLE TO GAS

Customer warrants that Customer will at the time of receipt of the Natural Gas by Pipeline

have good and merchantable title to all of the Natural Gas free and clear of all liens,

encumbrances and claims whatsoever. Title to the Gas received by Pipeline for Customer's

account hereunder shall remain in Customer during its transportation or storage by Pipeline.

Customer agrees to indemnify and save Pipeline harmless from all suits, actions, debts,

accounts, damages, costs, losses and expenses arising out of adverse claims of any and all

persons to the Natural Gas prior to its delivery to Pipeline for Customer's account and

after its delivery by Pipeline for Customer's account. Pipeline agrees to indemnify and save

Customer harmless from all suits, actions, debts, accounts, damages, costs, losses and

expenses arising out of adverse claims of any and all persons to the Natural Gas during its

transportation or storage by Pipeline for Customer's account.