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. 644A Third Revised Sheet No. 644A

Superseding: Second Revised Sheet No. 644A

GENERAL TERMS AND CONDITIONS

(Continued)

28.4 The terms of any discount request granted by Pipeline pursuant to this Section

28 shall be transmitted by e-mail to Customer in the form of a Discount

Confirmation. The Discount Confirmation shall identify the applicable

Customer's name, contract number, rate schedule, term of the discount,

discount rate, applicable quantities, point(s) of receipt and delivery, and/or

the pipeline path being discounted. The Discount Confirmation may also

include other information required for posting under the Commission's

regulations and other conditions consistent with Section 28.2. No particular

discount transaction shall be contractually binding on either Pipeline or

Customer until Pipeline has confirmed the terms of the discount upon

Pipeline's e-mail to Customer of the Discount Confirmation for the

transaction, subject to the underlying Service Agreement being fully executed.

All discounts granted shall be effective no sooner than the beginning of the

next Gas Day following the Gas Day on which the request is granted by

Pipeline. Once the discount is contractually binding, the Discount

Confirmation will constitute an addendum to the underlying Service Agreement.

Each such addendum is an integral part of the underlying Service Agreement as

if executed by both parties and fully copied and set forth at length therein.

28.5 If Pipeline's Recourse Rates are subject to refund at any time during the

effectiveness of a Discount Confirmation, with respect to the applicable

discounted rate, Customer shall be entitled to refunds of payments made by

Customer only in the event that the final, non-appealable maximum Recourse

Rate, whether usage-based or reservation-based, as determined by the

Commission for a given time period is lower than the rate actually paid by

Customer during such time period. Subject to the condition precedent set

forth in the immediately preceding sentence, Customer's principal refund

amount shall be equal to (i) with respective to usage-based rates, the product

of (aa) the positive difference between the final, non-appealable maximum

Recourse Rate and the discounted rate, and (bb) the Quantities of Gas

delivered to Customer, or for Customer's account, during the refund period;

and (ii) with respect to reservation-based rates, the product of (cc) the

positive difference between the final, non-appealable maximum Recourse Rate

and the discounted rate, (dd) the MDQ covered by the discounted rate, and (ee)

the number of Months in the refund period (partial Months shall be prorated

for the number of Days in the Month that fall within the refund period and a

discounted rate that is not a monthly rate shall be adjusted for purposes of

this calculation to reflect the monthly equivalent of the rate).