Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 02/12/1996, Docket: RP96-142-000, Status: Effective

First Revised Sheet No. 526 First Revised Sheet No. 526 : Effective

Superseding: Original Sheet No. 526

GENERAL TERMS AND CONDITIONS

(Continued)

imbalance level stated as a percentage. The

operational imbalance percentage shall be determined

on a month-to-date basis by dividing operational

imbalances by the scheduled quantities. The actual

imbalance percentage shall be determined by dividing

actual imbalances by the scheduled quantities.

Operating data and actual data will be accessible via

the LINKþ System or other mutually agreeable form of

communication. Imbalances resulting from capacity

restrictions caused by Pipeline beyond the period

allowed under Section 3 of any of Pipeline's applicable

firm rate schedules and force majeure will be Cashed-

out at the monthly average spot price. Such imbalance

quantities will be excluded from the determination of

imbalance percentages and the monthly Cash-out bill

determined pursuant to Section 8.1 (B)(2).

(2) If a Cash-out Party's imbalance is less than or equal

to 5%, the monthly Cash-out bill will be based on the

monthly average Spot Index Price. If a Cash-out

Party's imbalance is greater than 5%, the monthly

Cash-out bill will be based on the accumulated sum of

the results of the formulas listed below such that and

until the total monthly imbalance is fully accounted

for:

Imbalance

Level Factor Applicable Spot Index by Zone

0% - <5% 1.00 highest weekly

>5% - <10% 1.10 (highest weekly x quantity >5%) + level above

>10% - <15% 1.20 (highest weekly x quantity >10%) + levels above

>15% - <20% 1.30 (highest weekly x quantity >15%) + levels above

>20% - <25% 1.40 (highest weekly x quantity >20%) + levels above

>25% 1.50 (highest weekly x quantity >25%) + levels above

The amount due Pipeline shall be determined by

multiplying the corresponding Imbalance Level Factor

for the month by the applicable Spot Index Price for

the applicable zone times the actual quantities of

excess delivery or deficiency of receipts for the

month. For Rate Schedule SCT Customers, such Imbalance

Level shall be determined after Pipeline subtracts up

to 4,828 Dth, as necessary, from each Rate Schedule SCT

Customer's total monthly imbalance. Such amount

subtracted up to 4,828 Dth will be Cashed-out at the

monthly average. When the Total Monthly Imbalance