Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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

Original Sheet No. 532 Original Sheet No. 532 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

of Receipt into Pipeline's system, or (2) between actual

deliveries of natural gas and scheduled and confirmed deliveries

of natural gas at Point(s) of Delivery from Pipeline's system,

which Point(s) of Receipt and/or Point(s) of Delivery are subject

to Operational Balancing Agreements, as more fully described in

Section 8.4(B), on the day or days such variances arise, will be

resolved by Pipeline pursuant to the terms of the applicable

Operational Balancing Agreement and Customer shall not be subject

to any imbalance charges or penalties pursuant to its

transportation agreements with Pipeline for such imbalances.

(B) For the purpose of minimizing operational conflicts between

various pipeline facilities with respect to the delivery of gas to

and from Pipeline's facilities, Pipeline is willing to negotiate

and execute Operational Balancing Agreements with appropriate

parties that operate natural gas facilities which interconnect

with Pipeline's system (herein called OBA Party). Such

Operational Balancing Agreements shall specify the gas custody

transfer procedures to be followed by Pipeline and OBA Party for

the confirmation of scheduled quantities to be received by

Pipeline at Point(s) of Receipt and delivered by Pipeline at

Point(s) of Delivery. Such Operational Balancing Agreements will

provide that any variance between actual quantities and scheduled

and confirmed quantities for any day shall be resolved in-kind

promptly or Cash-out pursuant to the terms of the Operational

Balancing Agreement. To facilitate such determination of

variances on a timely basis, Pipeline and the OBA Party will agree

in the Operational Balancing Agreement on necessary measurement

and accounting procedures. Pipeline shall post on the LINKþ

System those Point(s) of Receipt and Point(s) of Delivery which

are subject to an Operational Balancing Agreement. Pipeline will

also provide to any party upon request a copy of any executed

Operational Balancing Agreement.

Balancing Agreements on a non-discriminatory basis with any OBA

Party. However, Pipeline shall have no obligation to negotiate

and execute Operational Balancing Agreements with any OBA Party

that:

(1) is not creditworthy as determined pursuant to Section 3.3 of

the General Terms and Conditions; for purposes of such

provision, references to Customer shall refer to the OBA

Party.

(2) does not maintain dispatching operation which is staffed on a

continuous, around-the-clock basis 365 days per year;