Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 12/01/2000, Docket: RP01- 69-000, Status: Effective

First Revised Sheet No. 253F First Revised Sheet No. 253F : Effective

Superseding: Third Sub Original Sheet No. 253F

RATE SCHEDULE VKFT

(Continued)

3. RATE

3.1 The applicable rates for service hereunder are set forth in the currently effective

Sheet No. 42B of this FERC Gas Tariff and are hereby incorporated herein. The rates in

this rate schedule are subject to adjustment pursuant to Sections 15.1, 15.3 and 15.6

of Pipeline's General Terms and Conditions and to the extent such service quantities

are not delivered hereunder for further transportation on Pipeline's system under one

or more of Pipeline's other rate schedules, Sections 15.2, 15.4 and 15.5 of Pipelines'

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. 42B.

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 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 MDQ and multiplied by the number of days in the month; and

(B) Monthly Usage Charge consisting of the sum of the following daily charges:

(1) The Usage-2 Charge Rate, as set forth on Sheet No. 42B, 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 Except as provided in Section 3.4 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

decreased by the amount of the Reservation Charge Adjustment (as set forth on Sheet No.

42B of Pipeline's FERC Gas Tariff, Volume No. 1, as such sheet may be revised, superseded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 and

multiplied by the number of days in the month. 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.