Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 03/01/1997, Docket: RP96-338-002, Status: Effective

Substitute Original Sheet No. 606 Substitute Original Sheet No. 606 : Effective

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, provided

such Customer's aggregate MDDO or MDRO, as applicable, does

not exceed its MDQ for such new service.

(B) Commencing March 1, 1997, unutilized Section 14.9 Firm

Capacity may be recalled only to the extent necessary to

fulfill requests under Section 14.10(A). MDDO and/or MDRO

capacity is not considered to be Section 14.9 Firm Capacity

and, therefore, is not subject to potential reduction

pursuant to this Section 14.10(B). 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 during the twelve-month calendar period prior to

March 1, 1997 or the date of a valid request, whichever is

later; provided, however, that a Customer shall retain

rights to Section 14.9 Firm Capacity for a minimum of twelve

months.

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. Such Customer's Firm Peak Day Quantity

shall include quantities delivered or received by any

Replacement Customer holding firm capacity at a point under

a capacity release arrangement with such Customer pursuant

to Section 3.14 of the General Terms and Conditions.

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

equal to the greater of: