Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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

Original Sheet No. 245 Original Sheet No. 245 : Effective

RATE SCHEDULE IT-1

(Continued)

3. RATE

3.1 The applicable rates for service hereunder in each zone are set forth

in the currently effective Sheet No. 42 of this FERC Gas Tariff and hereby

incorporated herein. 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) as set forth on the effective Sheet No. 42. 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 a Monthly Usage Charge consisting of the sum of the following daily

charges:

(A) 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.

(B) The Usage-2 Charge Rate, as set forth on Sheet No. 42, 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.

3.3 For Customers executing a service agreement for transportation which is

solely a backhaul transportation arrangement, Customer shall pay Pipeline each

month a Monthly Usage Charge consisting of the sum of the following daily