Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 03/27/2000, Docket: RP00-535-000, Status: Suspended

First Rev Eighth Revised Sheet No. 463 First Rev Eighth Revised Sheet No. 463 : Suspended

Superseding: Eighth Revised Sheet No. 463

GENERAL TERMS AND CONDITIONS

(Continued)

election, service for all or part of the contractual quantity will be extended

for a term to be specified by the Customer, so long as such Customer agrees to

pay the maximum rate; provided, however, if Pipeline and Customer mutually agree

to a lower rate which yields to Pipeline a net present value equal to or greater

than any bid received pursuant to Section 3.13(C) and rejected by Pipeline, the

Customer does not have to pay the maximum rate to retain the capacity and

Pipeline shall have all necessary pregranted abandonment authorization as to any

part of the contractual quantity for which Customer elects not to extend

service.

3.14 Capacity Release

This Section 3.14 sets forth a firm capacity release mechanism pursuant to which

existing Customers under any firm, Open-access, Part 284 service agreement can

voluntarily release and assign all or part of their firm capacity rights to a

Replacement Customer or a Prearranged Customer that wants to obtain that firm capacity

by entering into a contract with Pipeline. Customers may release and assign their firm

capacity on Pipeline under any firm, Open-access, Part 284 service agreement only under

this Section 3.14 of Pipeline's General Terms and Conditions. This Section 3.14 is not

applicable to any Customer whose service agreement has been executed pursuant to an

individually certificated service. Pipeline will use an open bidding format and will

post each Customer's offer to release capacity (herein called Customer's Notice) and

all the bids against that Customer's Notice, except for the names of the parties. Bids

are to be based on the Reservation Charge only, provided the Reservation Charge may be

converted into a volumetric charge. The maximum rate for such volumetric releases is

set forth on Sheet Nos. 27, 32, 34A, 34B, 34C, 34D, 34E, 38, 42A, 42B, 44 and 47. For

purposes of this Section 3.14, a Customer is entitled to specify a rate for the

capacity to be released equal to the maximum Reservation Charge, plus all applicable

fixed surcharges. Effective through September 30, 2002, or any later date established

by the Commission, a Customer, a Replacement Customer or a Prearranged Customer may

specify a rate in excess of the maximum rates referenced above if the term of the

release is less than one (1) year.

(A) Capacity Eligible For Release:

Pipeline's Customers under any firm, Open-access rate schedules are permitted to

release their firm capacity in whole or in part as set forth in 3.14(J) herein,

on a permanent or temporary basis, and on a firm or recallable basis. Such

Customer may propose an entity (herein called Prearranged Customer) to obtain

its released capacity from Pipeline.

(B) Posting Requirements and Bid Periods for Releases Subject to Bidding:

The proposed duration of the Customer's release determines the minimum Bid

Period for the Customer's Notice pursuant to this Section 3.14. The capacity

release timeline is applicable to all parties involved in the capacity release

process; however, the standard timelines are only applicable if (i) all

information provided by the parties to the