Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP97- 3-002, Status: Effective

First Revised Sheet No. 468 First Revised Sheet No. 468 : Superseded

Superseding: Original Sheet No. 468

GENERAL TERMS AND CONDITIONS

(Continued)

(F) "Best Bid":

The "best bid" shall be determined in accordance with the

bid evaluation method specified by the Customer pursuant to

Section 3.14(D)(1)(i). The "best bid" may be determined as

that bid which generates (1) the highest rate, (2) the

maximum net revenue, or (3) the highest present value. In

the event the Customer elects not to submit a bid evaluation

method, the "best bid" shall be the bid which generates the

maximum net revenue. However, Pipeline shall reject any bid

which does not match the minimum term or any other minimum

specifications set forth in Customer's Notice. If pursuant

to Section 3.14(D)(1)(h) Customer states the minimum

Reservation Charge on a percentage basis of the maximum

rate, bids shall be received on a percentage basis of the

maximum rate. For all releases, the usage portion of the

rates is determined by the Pipeline and the Replacement or

Prearranged Customer and as such will not be taken into

consideration when determining the "best bid". In the event

both a contingent bid and a non-contingent bid meet the

minimum conditions stated in Section 3.14(D)(1)(h) and

generate the "best bid", Pipeline shall reject the

contingent bid.

(G) Obligations of All Parties:

(1) Obligation of Pipeline

Pipeline will be required pursuant to Section 2 of the

General Terms and Conditions to provide the LINKþ

System for access by Customers, Replacement Customers

or Prearranged Customers participating in this Section

3.14 and to otherwise comply with the provisions of

this section. If the Replacement or Prearranged

Customer satisfies the Pipeline's applicable tariff

provisions governing Customer eligibility and its bid

is accepted by Pipeline, Pipeline shall notify a

Customer in the event such Replacement or Prearranged

Customer fails to pay part or all of the amount of any

bill for service provided when such amount is due in

accordance with Section 10 of the General Terms and

Conditions. Pipeline will finalize an appropriate

Addendum to the Capacity Release Umbrella Agreement, a

Form of Service Agreement of which is contained in the

General Terms and Conditions, with the Replacement or

Prearranged Customer. Pipeline will notify the

Customer with recall rights of the name of new

Replacement Customers who subsequently obtain such

capacity after the Addendum to the Capacity Release

Umbrella Agreement is executed. In those instances

when the Commission determines that Pipeline charged

more than the just and reasonable rate and requires