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. 473 First Revised Sheet No. 473 : Effective

Superseding: Original Sheet No. 473

GENERAL TERMS AND CONDITIONS

(Continued)

(B) Pipeline will assign its upstream firm transportation

capacity and its upstream firm contract storage capacity,

whether Part 284 or individually certificated, (both

hereinafter called upstream capacity) to its firm

transportation Customers or their downstream parties and to

any other party to the extent necessary to provide capacity

to such parties that desire upstream capacity. Pipeline

shall not be required hereby to assign interruptible

capacity held by Pipeline on upstream pipelines, firm

capacity held by Pipeline on intrastate pipelines, or

upstream exchange transactions. Assignments will occur as

follows:

(1) All assignments pursuant to this Section 3.15(B) will

be permanent and will be effective on the date set

forth in the Assignment Agreement. Upon the effective

date of such assignment, Pipeline shall be relieved of

all rights and obligations associated with the assigned

upstream capacity, including but not limited to any and

all charges, and Pipeline shall have no further

liability of any kind with respect to either the

upstream capacity or the assignment.

(2) Initial Assignments shall occur hereunder pursuant to

18 C.F.R. Section 284.242 during restructuring

discussions in Docket No. RS92-11 under 18 C.F.R.

Section 284.14(c) as provided in Section 3.15(B)(4).

Additional Assignments of additional available firm

upstream capacity may be made by Pipeline after the

initial period set forth in Section 3.15(B)(4). Any

Initial Assignment pursuant to this Section 3.15(B)(2)

must be effectuated before Pipeline releases capacity

under the terms of the upstream pipeline's FERC Gas

Tariff. If Pipeline releases thereafter capacity under

the capacity reallocation provisions of the FERC Gas

Tariff of the upstream pipeline, the capacity remains

assignable as an Additional Assignment; however, any

release made prior to the Additional Assignment would

remain in force for its term.

(3) Initial Assignments will be made first to firm

transportation Customers or their downstream parties

and second to any other party based on their firm

capacity rights (if any) at the point of

interconnection with the upstream pipeline compared to

total capacity at the point of interconnection. If

there is upstream capacity remaining unassigned,

requested Initial Assignments will be made first to

firm transportation Customers or their downstream

parties and second to any other party on a pro rata

basis based on their firm capacity rights, if

applicable, or on MDQ requested compared to the total