Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 02/12/1997, Docket: RP96-338-000, Status: Suspended

Original Sheet No. 606 Original Sheet No. 606 : Suspended

GENERAL TERMS AND CONDITIONS

(Continued)

Firm Capacity may be designated as MDDO or MDRO to the

extent (1) such Customer's MDDO or MDRO, as applicable, is

less than its MDQ, or (2) such Customer requests that an

equivalent quantity of existing MDDO or MDRO, as applicable,

under Customer's executed service agreements be designated

as Section 14.9 Firm Capacity. Any capacity awarded under

this Section 14.10 for a new firm service shall be

designated as MDDO, or MDRO, as applicable, in the

applicable exhibit of each requesting Customer's executed

service agreement(s) under such new firm service.

(B) Unutilized Section 14.9 Firm Capacity may be recalled to

fulfill requests under Section 14.10(A). In the event it is

necessary for Pipeline to recall Section 14.9 Firm Capacity

to satisfy a request under Section 14.10, Section 14.9 Firm

Capacity may be retained by a Customer based on the usage of

the point for up to a twelve-month period prior to the date

of a valid request. Quantities delivered or received by

such Customer during such evaluation period will be utilized

to determine the Customer's Firm Peak Day Quantity. The

Firm Peak Day Quantity, for purposes of this Section 14.10,

shall be the greatest daily quantity utilized for such

period under Rate Schedules CDS, FT-1, SCT, and/or SS-1 at

each Section 14.9 Firm Capacity point. The quantity of

Section 14.9 Firm Capacity that may be retained at each

point by a Customer shall be determined as follows.

(1) If the point does not have an MDDO or an MDRO, as

applicable, on the exhibit(s) to the Customer's

executed service agreements under Rate Schedules CDS,

FT-1, SCT, and/or SS-1, the quantity retained will be

limited to the greater of:

(a) the Customer's existing Section 14.9 Firm Capacity

less the quantity required to meet a valid request

at the point, if one hundred ten percent (110%) of

the Firm Peak Day Quantity is less than the

Customer's existing Section 14.9 Firm Capacity; or

(b) the lesser of (i) one-hundred ten percent (110%)

of the Firm Peak Day Quantity, or (ii) the

Customer's existing Section 14.9 Firm Capacity.

(2) If the point does have an MDDO or an MDRO, as

applicable, on the exhibit(s) to the Customer's

executed service agreements under Rate Schedules CDS,

FT-1, SCT, and/or SS-1, the quantity retained will be

limited to the greater of: