Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 10/01/2000, Docket: RP00-535-000, Status: Suspended

First Revised Sheet No. 456C First Revised Sheet No. 456C : Suspended

Superseding: Original Sheet No. 456C

GENERAL TERMS & CONDITIONS

(Continued)

3.13 Procedures For Avoidance of Pregranted Abandonment

(A) To the extent a Customer satisfies the bid matching requirements of this Section

3.13 or Pipeline and Customer reach agreement as contemplated by Section

3.13(G), such Customer may retain its capacity and continue to receive firm

service under a long-term firm service agreement under an Open-access Rate

Schedule for which Pipeline has served notice of termination ("right of first

refusal"). The right of first refusal shall be applicable only to (i) firm

service agreements requiring the payment of the maximum applicable tariff rate

with a primary term of at least twelve (12) months of consecutive service, or

(ii) firm service agreements requiring the payment of the maximum applicable

tariff rate with a primary term of more than one (1) year for service which is

not available for twelve (12) consecutive months. Service agreements which

include negotiated rates and/or discounted rates shall not be eligible for the

right of first refusal, with the exception that any service agreement executed

prior to October 1, 2000, shall be granted a one-time exemption and the right of

first refusal provisions described in this section shall apply; provided,

however, that the right of first refusal shall be applicable to a service

agreement entered into or re-executed to supersede a contract grandfathered

under the prior provision only if the new service agreement meets the

requirements of (i) and (ii) above. If Customer does not satisfy the bid

matching requirements of this Section 3.13 or Pipeline and Customer do not reach

agreement as contemplated by Section 3.13(G), Customer shall no longer have, as

of the termination date of the service agreement, rights under the long-term

firm service agreement under an Open-access Rate Schedule for which Pipeline has

served notice of termination and Pipeline shall have all necessary abandonment

authorizations under the Natural Gas Act. This Section 3.13 is not applicable

and Customer shall have no rights hereunder to the extent the long-term firm

service agreement under an Open-access Rate Schedule is terminated by Customer,

and Pipeline shall have all necessary abandonment authorization under the

Natural Gas Act. In addition to those procedures outlined herein, the following

service agreements are not subject to pregranted abandonment and may be

abandoned by Pipeline only upon receipt of Commission approval under Section

7(b) of the Natural Gas Act.

Short-term firm service agreements under an Open-access Rate Schedule and

interruptible service agreements under an Open-access Rate Schedule are not

subject to the abandonment protection of this Section 3.13. Upon termination of

such a service agreement, Pipeline shall have all necessary abandonment

authorization under the Natural Gas Act effective as of such termination date.