Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 08/01/1994, Docket: RP94-314-000, Status: Effective

Original Sheet No. 354 Original Sheet No. 354 : Effective

RATE SCHEDULE FTS-7

(Continued)

Such Customers at any time may request, in a form suitable to Pipeline, to

firm up, as firm service under this Rate Schedule, any portion of its MDQ

under the applicable Rate Schedule IT-1 Service Agreement. Upon receipt of

such a request, Pipeline shall inquire of all Customers under this Rate

Schedule if they also desire at such time to firm up any portion of their

respective Rate Schedule IT-1 MDQ. If Pipeline receives sufficient

requests for firmed up MDQ which, in Pipeline's sole opinion, makes it

economically feasible to expand Pipeline's system, Pipeline shall make the

necessary expansion of its system as soon as practicable after all

necessary regulatory and governmental authorizations on terms and

conditions acceptable to Pipeline are granted. Upon completion of the

system expansion, Pipeline shall notify each Customer which requested a

firmed up MDQ of its new MDQ under this Rate Schedule and the effective

date thereof. The annual costs associated with all facilities which must

be added to Pipeline's system to enable the establishment of and firm up of

the MDQ's of Customers hereunder shall be borne by those Customers which

have MDQ's hereunder by means of the Reservation Charge.

11. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions of Pipeline's FERC Gas Tariff

of which this Rate Schedule is a part are applicable to this Rate Schedule

and are made a part hereof to the extent that such terms and conditions are

not contradicted by any provision herein.