Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 11-009, Status: Effective

Original Sheet No. 527 Original Sheet No. 527 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(4) The Cash-out Party shall pay Pipeline as provided herein and

in accordance with Section 10 of the General Terms and

Conditions. If payment is not received within ten (10) days

of the date of the bill, Cash-out Party shall then have

thirty (30) days to either pay the bill with accrued interest

or provide evidence of intent to pay. If payment, surety

bond, or other good and sufficient security is not received,

Pipeline shall give notice to Cash-out Party, and Pipeline

may suspend service to Cash-out Party effective immediately

upon notice to Cash-out Party and the Commission. Pipeline

will not suspend service in the case of a valid billing

dispute, however, in the event of default by a TABS-1, TABS-2

or MBA Party, the transportation Customer(s) is responsible

for the payment provisions contained in this section;

provided, however, that in the event that more than one

transportation Customer is receiving service from a TABS-1 or

TABS-2 Service Point or MBA Zone, such Customer will be

Cashed-out according to the predetermined allocation given to

the pipeline by the supplier. If predetermined allocation is

unavailable, each Customer's pro rata share of actual

quantities received will be used to determine Cash-out bills.

In the event of an imbalance, when actual deliveries are less than

actual receipts, Pipeline will purchase from the Cash-out Party

such excess receipts or deficiency of deliveries.

(1) Imbalance Due Cash-out Party

Each month a Total Monthly Imbalance Percentage will be

calculated by using the lesser of the operational imbalance

level, stated as a percentage, or the actual 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.