Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Fourth Revised Sheet No. 471 Fourth Revised Sheet No. 471 : Superseded

Superseding: Third Revised Sheet No. 471

GENERAL TERMS AND CONDITIONS

(Continued)

with Pipeline, the Replacement or Prearranged Customer

becomes an existing Customer like any other Customer

and is subject to the applicable provisions of

Pipeline's FERC Gas Tariff, including but not limited

to Pipeline's billing and payment and operational

provisions. In addition, the Replacement or

Prearranged Customer as an existing Customer may also

release its capacity pursuant to this Section.

(H) Billing:

(1) Pipeline will bill the Customer releasing capacity the

amount it is obligated to pay Pipeline for (1) Reser-

vation Charges, reservation surcharges, other fixed

costs and (2) Usage Charge(s), volumetric surcharges,

Overrun Charges, Excess Charges, imbalances and/or

other volumetric costs attributable to any capacity

retained by such Customer and Pipeline shall credit the

bill of the Customer releasing capacity an amount equal

to the Reservation Charges, surcharges and/or other

fixed cost attributable to capacity rights released by

such Customer, (hereinafter called "Credit Back");

provided, however, Pipeline shall have the right to

reverse such Credit Back and to charge applicable

carrying charges calculated in accordance with Section

154.501(d) of the Commission's Regulations to the

Customer in the event Pipeline is not paid such charges

for the released capacity.

(2) Notwithstanding the foregoing, Pipeline shall be

entitled to retain an agreed upon amount of any

applicable Credit Back to be credited to a Customer

when Pipeline, at the request of Customer and upon

reaching an agreement with Customer therefore, takes

other action to market such Customer's released

capacity beyond posting the information on the LINKþ

System and through electronic data interchange and

locates the Replacement Customer. Pipeline will not be

compensated if it does not locate the Replacement

Customer, such as where the Customer has a prearranged

deal or where a Replacement Customer accepts a posted

Customer's Notice without Pipeline actively marketing

that released capacity.

(I) Capacity Assignment:

Once the conditions of this FERC Gas Tariff are met and the

terms and conditions specified in the Customer's Notice are

met, Replacement or Prearranged Customer and Pipeline will

finalize an applicable Addendum to the Capacity Release

Umbrella Agreement and the Replacement or Prearranged

Customer will be considered as any other existing Customer

on Pipeline's system.

(J) Release of Discrete Packages:

In addition to releasing a portion of all capacity rights

under a firm service agreement under Rate Schedules CDS,