Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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

First Revised Sheet No. 204 First Revised Sheet No. 204 : Effective

RATE SCHEDULE CDS

(Continued)

decreased by the amount of the Reservation Charge Adjustment (as set forth on

Sheet No. 25 of Pipeline's FERC Gas Tariff, Volume No. 1, as such sheet may

be revised, superseded or supplemented from time to time) multiplied by the

quantity of gas not delivered up to the lesser of the total quantity of gas

requested and not delivered, or the MDQ. Such Reservation Charge Adjustment

shall be discounted in the case of an executed service agreement containing

a discounted Reservation Charge Rate in the same proportion such Reservation

Charge Rate is discounted from the maximum Reservation Charge Rate.

3.6 Pipeline shall not be obligated to adjust the Reservation Charge

pursuant to Section 3.5 when Pipeline's failure to deliver on any one day at

least 95% of the quantity of gas requested by Customer to be delivered at

Point(s) of Delivery which gas Pipeline is obligated to deliver on a firm

basis at such Point(s) of Delivery on such day up to the MDQ:

(A) is the result of the conduct of Customer or the downstream

operator of the facilities at the Point of Delivery;

(B) is the result of Pipeline having operational flow orders in

effect on such day;

(C) is the result, during the period from May 1 through

November 1 of any year, of Pipeline performing routine

operational maintenance and repair;

(D) is the result of Pipeline performing at anytime repair and

maintenance of its facilities to comply with applicable

regulatory requirements, or

(E) occurs either (1) within ten (10) days following a force

majeure event as contemplated by Section 17.1 of the

General Terms and Conditions, or (2) prior to the date

Pipeline has or should have, in the exercise of due

diligence, overcome the force majeure event, whichever

occurs first

provided, however, 3.6(C) and 3.6(D) are also subject to the notice and due

diligence requirements of Section 17.3 of the General Terms and Conditions.

3.7 Customized Reservation Patternþ (CRPþ)

(A) The CRPþ election provides an alternative to uniform

monthly billing of the Reservation Charge as contemplated

by the rates set forth on Sheet Nos. 25 and 27. Billing

and payment of CRPþ Reservation Charges shall be in

accordance with the reservation pattern elected by Customer

on the LINKþ System. Rates reflecting such Customer

election shall be posted on the LINKþ System. The total

Reservation Charges resulting from CRPþ will not exceed the

total Reservation Charges Customer would pay without the

CRPþ election for the same 12 month period. An adjustment,

if necessary, will be included on the invoice for the last

month of the CRPþ period (November 1 - October 31) to

ensure Reservation Charges due Pipeline under Pipeline's