Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 11-009, Status: Effective

Original Sheet No. 203 Original Sheet No. 203 : Effective

RATE SCHEDULE CDS

(Continued)

Usage Charge Rates will be assessed upon the zones of initial receipt and

ultimate delivery of each Dth on Pipeline's system.

3.3 For Customers executing a service agreement for transportation which is

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.

(3) The Usage-3 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 Customer's maximum

daily contractual entitlement for such day.

Usage Charge Rates will be assessed upon the zones of initial receipt and

ultimate delivery of each Dth on Pipeline's system.

3.4 In addition to all other charges hereunder, Customers shall pay

Pipeline the applicable Incremental Facility Charge, as set forth on Sheet No.

29, per month per Dth of additional MDQ for which each Customer contracted under

Pipeline's various incremental facility expansions. The additional Dth

applicable for each Customer under each applicable incremental facility expansion

are set forth on Sheet No. 29.

3.5 Except as provided in Section 3.6 of this Rate Schedule, in the event

Pipeline fails to deliver on any one day at least 95% of the quantity of gas

requested to be delivered by Pipeline at Point(s) of Delivery which Pipeline is

obligated to deliver on a firm basis at such Point(s) of Delivery on such day up

to the MDQ, the Reservation Charge shall be