Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 03/14/2010, Docket: RP10-637-000, Status: Effective

First Rev Eighth Revised Sheet No. 645 First Rev Eighth Revised Sheet No. 645

Superseding: First Rev Seventh Revised Sheet No. 645

GENERAL TERMS AND CONDITIONS

(Continued)

29. NEGOTIATED RATES

Pipeline and Customer may mutually agree on a Negotiated Rate or rate formula with respect to

rates, rate components, charges, or credits differing from the otherwise applicable Recourse

Rate under Rate Schedules CDS, FT-1, MLS-1, SCT, VKFT, LLFT, IT-1, VKIT, LLIT, PAL, SS-1,

ISS-1, and/or FSS-1.

29.1 Definition

A Negotiated Rate may be less than, equal to, or greater than the maximum Recourse

Rate and/or the minimum rate; may be a rate design other than straight fixed-variable;

and may include a minimum quantity. The Recourse Rates will be available to any

Customer that does not wish to negotiate a rate.

29.2 Limitations

This Section 29 does not authorize the negotiation of terms and conditions of service.

29.3 Allocation of Capacity

Under any circumstances where allocation of capacity is determined by the rate being

paid, a Negotiated Rate Customer paying a rate higher than the maximum Recourse Rate

will be deemed to be paying a rate equal to such maximum Recourse Rate.

29.4 Bidding for Capacity

The cap for bidding for capacity under the right of first refusal provisions in

Section 3.13 of the General Terms and Conditions of this FERC Gas Tariff is the

maximum Recourse Rate.

29.5 Capacity Release

(A) Except as expressly provided for in Section 3.14 of the General Terms and

Conditions, the release of capacity under a Negotiated Rate agreement is capped

at the maximum Recourse Rate; provided, however, the Negotiated Rate Customer

will continue to be obligated to pay Pipeline the difference by which the

Negotiated Rate exceeds the rate paid by the Replacement Customer. Pipeline and a

Negotiated Rate Customer may agree upon payment obligations and crediting

mechanisms, which vary from or are different from those set forth in Pipeline's

capacity release provisions.

(B) To the extent that Pipeline agrees to a Negotiated Rate applicable to usage

and/or fuel charges, Pipeline will consider, if requested by the Negotiated Rate

Customer, and may agree with the Negotiated Rate Customer, on a not unduly

discriminatory basis, to the terms and conditions pursuant to which Pipeline will

offer such Negotiated Rate(s) to Replacement Customer(s). This agreement to flow

through the Negotiated Rates for usage and/or fuel charges to a Replacement

Customer will be documented as set forth in Section 29.8 below. A Replacement

Customer to whom such offer is made may elect to pay the usage and/or fuel

charges pursuant to Pipeline's Recourse Rates or pursuant to the offered

Negotiated Rate.

29.6 Accounting Treatment

Pipeline will establish a new sub-account to record the revenues received from any

Negotiated Rate transactions and shall maintain supporting information at a level of

detail that would be sufficient for Natural Gas Act Section 4 rate change filing

purposes. Pipeline will keep separate and identifiable each volume transported,

billing determinant, rate component, surcharge, and revenue associated with a

Negotiated Rate to permit filings in the form of Statements G, I, and J in future rate

proceedings.