Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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

Original Sheet No. 256 Original Sheet No. 256 : Effective

RATE SCHEDULE TABS-1

(Continued)

2.3 Allocation methodologies shall be required from the TABS-1 Party for

the TABS-1 Service Points in accordance with Section 18.2 of Pipeline's General

Terms and Conditions.

2.4 Nothing herein shall limit Pipeline's right to take action as may be

required to adjust receipts of gas in order to alleviate conditions which

threaten the integrity of its system, including actions taken pursuant to

Sections 4 and 17 of Pipeline's General Terms and Conditions.

3. IMBALANCE RESOLUTION

3.1 It is the intent of the parties that the quantities of gas received

into and scheduled out of each TABS-1 Service Point will balance. However, the

parties recognize that operational variances may occur from day to day. Based on

the information available Pipeline will provide notice to the TABS-1 Party of any

imbalance situation which has occurred or may occur unless corrective action is

taken.

3.2 Daily Imbalances Upon notification by Pipeline of a daily imbalance

situation, the TABS-1 Party shall, within a reasonable time as specified at the

time of notification by Pipeline in its reasonable judgment taking into account

Pipeline's system operating conditions and other considerations as may be a

result of such imbalance, provide Pipeline any information necessary to adjust

receipts of gas under this Rate Schedule TABS-1 and/or deliveries of gas for the

account of TABS-1 Party under the applicable transportation contracts, or elect

and implement one or more of the options listed in this Section 3.2 in order to

maintain or restore a daily balance between actual receipts and scheduled

quantities. TABS-1 Party shall have the option under this Rate Schedule to

resolve all or any fraction of the imbalance as follows:

(A) Exchange an imbalance due Pipeline allocated to a TABS-1 Service

Point under its TABS-1 Service Agreement with a balance due

another TABS-1 Party allocated to the same TABS-1 Service Point

under another TABS-1 Party's TABS-1 Service Agreement. Exchange

of imbalances shall be accomplished upon notification to Pipeline

by the applicable TABS-1 Parties. In addition, (a) upon request

of the TABS-1 Party and subject to such TABS-1 Party being a

LINKþ System Subscriber and subject to Section 2.7 of the General

Terms and Conditions, Pipeline will post on the LINKþ System

information regarding the TABS-1 Party's imbalance.

(B) Transport an imbalance due a TABS-1 Party at one TABS-1 Service

Point under a TABS-1 Service Agreement to an imbalance due

Pipeline allocated to another TABS-1 Service Point. Transport of

imbalances shall be accomplished by adjustments to a daily

transportation nomination pursuant to the TABS-1 Parties' executed

transportation service agreements.