Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 05/29/1996, Docket: RP96-218-000, Status: Effective

First Revised Sheet No. 202 First Revised Sheet No. 202 : Effective

RATE SCHEDULE CDS

(Continued)

2.5 Pipeline shall not be obligated to add any facilities or expand

the capacity of its pipeline system in any manner in order to provide

transportation service to Customer pursuant to this Rate Schedule; provided,

it is agreed by all Rate Schedule CDS Customers that Pipeline may, but is not

obligated to, develop new storage fields and add facilities as necessary to

provide service hereunder.

3. RATE

3.1 The applicable rates for service hereunder in each zone are those

uniform rates set forth in the currently effective Sheet Nos. 25, 26, 27, 28

and 29 of this FERC Gas Tariff and are hereby incorporated herein, or, in the

event the capacity is subject to the Customized Reservation Patternþ program

pursuant to Section 3.7 of this rate schedule are those CRPþ reservation

charge rates determined pursuant to said Section 3.7 applicable to Customer.

The rates in this rate schedule are subject to adjustment pursuant to Section

15 of Pipeline's General Terms and Conditions. Unless Pipeline and Customer

agree in writing upon a rate for service provided hereunder, the rate

applicable to a Customer for service hereunder shall be the applicable

maximum rate(s). In the event a rate less than the applicable maximum

rate(s) and not less than the applicable minimum rate(s) is agreed upon, such

rate shall be applicable for the period agreed upon by Customer and Pipeline.

3.2 For Customers executing a service agreement for transportation

which is not solely a backhaul transportation arrangement, Customer shall pay

Pipeline each month the sum of the following amounts:

(A) Reservation Charge:

The Reservation Charge Rate, as determined pursuant to

Section 3.1 herein, multiplied by the Applicable Billing

Determinants; and

(B) Monthly Usage Charge consisting of the sum of the following

daily charges:

(1) The Usage-1 Charge Rate, as determined pursuant to

Section 3.1 herein, multiplied by that portion of

the total quantity of gas deliveries on any day

pursuant to the executed service agreement, which is

not in excess of 110% of scheduled service levels

for such day.

(2) The Usage-2 Charge Rate, as set forth on Sheet No.

26, multiplied by that portion of the total quantity

of gas deliveries on any day pursuant to the

executed service agreement, which is in excess of

110% of scheduled service levels for such day and

less than 110% of Customer's maximum daily

contractual entitlement for such day.