Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 03/14/2010, Docket: RP10-375-000, Status: Effective

Fourth Revised Sheet No. 646 Fourth Revised Sheet No. 646

Superseding: Third Revised Sheet No. 646

GENERAL TERMS AND CONDITIONS

(Continued)

30. SEGMENTATION, POINT RIGHTS AND RELATED SCHEDULING

30.1 Segmenting of Capacity by Means of Nomination.

(a) In addition to any other transportation rights under the applicable Rate

Schedule and related Service Agreement, a Customer under Rate Schedules CDS,

FT-1 and SCT shall have the right to segment the contract capacity held by

utilizing multiple receipts and deliveries within the Market Area Zones

containing the Customer's Transportation Path. The right to segment is

subject to the requirement that a Customer's utilization pursuant to its

contract, and if such contract is the result of capacity release the

utilization of all other Customers of capacity rights derived from the

original firm contract, does not exceed in the aggregate (based on all

relevant Customer utilization) the contract entitlements of the original firm

contract in any segment (including, without limitation, the MDQ, Zone Boundary

Entry or Zone Boundary Exit Quantities) where the nominated transactions

overlap.

(b) For the purpose of determining whether any overlapping transactions exceed in

the aggregate (based on all relevant Customer utilization) the contract

entitlements, a transaction that involves movement of Gas in the same

direction as that contemplated by the Primary Point(s) of Receipt and the

Primary Point(s) of Delivery on the firm service agreement and a transaction

that involves movement of Gas that is counter to the direction contemplated by

the Primary Point(s) of Receipt and the Primary Point(s) of Delivery nominated

to the same Point of Delivery for the same Gas flow date and time shall not be

deemed to be an overlap at that Point of Delivery; provided, however, in no

event shall Pipeline be obligated to deliver on a primary firm basis at that

Point of Delivery a quantity in excess of the MDDO or Section 14.9 Firm

Capacity applicable to that Point of Delivery. For the purpose of determining

whether any overlapping transactions in a segment exceed in the aggregate

(based on all relevant Customer utilization) the contract entitlements for

that segment, a transaction that involves movement of Gas in the same

direction as that contemplated by the Primary Point(s) of Receipt and the

Primary Point(s) of Delivery on the firm service agreement and a transaction

that involves movement of Gas that is counter to the direction contemplated by

the Primary Point(s) of Receipt and the Primary Point(s) of Delivery nominated

on the same segment for the same Gas flow date and time shall be deemed to be

an overlap on the segment.

(c) In the event that a Releasing Customer and/or its Replacement Customer(s)

submit overlapping nominations which in sum exceed in any segment, in the

aggregate, the level of entitlement for which the Releasing Customer

originally contracted, the relative priority of each nomination shall be

determined first according to the scheduling procedures in Section 4.1 of the

General Terms and Conditions and the Secondary Point priorities specified in

Section 30.6(b) below, then by applying the overlap priorities provided in the

Releasing Customer's Notice pursuant to Section 3.14(D)(1) of the General

Terms and Conditions. If the Releasing Customer fails to provide overlap

priorities in its notice, Pipeline shall allocate capacity to the overlapping

nominations pro rata based on nominations.

(d) Unless the point at which Gas is received or to which Gas is delivered is

designated in Customer's service agreement as having an MDRO, MDDO, or Section

14.9 Firm Capacity, and the quantity being received or delivered is within the

applicable contractual limits, such point shall be a Secondary Point, subject

to the Zone Boundary Exit/Entry provision set forth in Section 30.3 below.