Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

Effective Date: 04/24/2005, Docket: RP05-243-000, Status: Effective

First Revised Sheet No. 622 First Revised Sheet No. 622 : Effective

Superseding: Original Sheet No. 622

GENERAL TERMS AND CONDITIONS

(Continued)

(H) Exit Fee:

To the extent that a Customer desires to terminate an existing contract and

Pipeline agrees to such termination, Pipeline will collect all or a portion of

the capacity Reservation Charges otherwise recoverable by Pipeline from

Customers for the balance of the contractual term, absent such early

termination.

15.3 Research and Development Adjustment

(A) Procedure for Computation of Adjustment:

The Research and Development (R&D) Adjustment shall be reflected in rates only

when it amounts to at least one tenth of one mill ($0.0001) per Dth of annual

jurisdictional throughput. The R&D Adjustment shall be applied to the commodity

component of all applicable rates and shall maintain historical rate design

concepts.

(1) Research and Development Chargeable to Operation

The R&D Adjustment shall reflect the amount which actual R&D expenditures

chargeable to operations during the twelve-month period ending three

months prior to the effective date of R&D Adjustment exceed or are less

than (a) the amount allowed in Pipeline's last rate proceeding or the

average of three years R&D expenditures for the initial filing under this

Section 15.3; or (b) the actual R&D expenditures in Pipeline's last R&D

Adjustment under this Section 15.3.

(2) Research and Development Includable in Rate Base

The R&D Adjustment shall reflect the amount which the actual balances in

Account No. 188 during the twelve-month period ending three months prior

to the effective date of R&D Adjustment exceed or are less than (a) the

amount allowed in Pipeline's last previous rate proceeding for the initial

filing under this