Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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

Original Sheet No. 528A Original Sheet No. 528A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(D) If an imbalance is caused by a failure of Pipeline to meet

its contractual pressures or if all of the Customer's

Point(s) of Delivery are on flow control and are controlled

by the Pipeline, Cash-out will be performed at the monthly

average index price. The monthly average index price shall

be calculated by taking the summation of all the weekly Spot

Index Prices, for the month, divided by the number of such

weekly Spot Index Prices.

(E) If an imbalance or any portion of an imbalance is a direct

result of Customer's inability to reconcile during the month

due to issuance of operational flow orders pursuant to

Section 4.3 or to the provisions of TABS-2, then Pipeline

will extend the Customer's time for volumetric

reconciliation to the end of the next calendar month. Any