Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 05/09/1994, Docket: RP94- 33-003, Status: Effective

Second Revised Sheet No. 625A Second Revised Sheet No. 625A : Effective

Superseding: First Revised Sheet No. 625A

GENERAL TERMS AND CONDITIONS

(Continued)

The costs for such GSR Demand Surcharge, with the

exception of buyout costs which are incurred after

January 1, 1994 and are, in the aggregate, in

excess of fifteen (15) million dollars for a

quarterly filing, shall be amortized and recovered

over a three (3) month period. To the extent

buyout costs which are incurred after January 1,

1994 and are, in the aggregate, in excess of

fifteen (15) million dollars for a quarterly

filing, the costs for such GSR Demand Surcharge

shall be amortized and recovered over a two (2)

year period.

(i) Pipeline shall render a bill each month to

applicable Rate Schedule CDS, FT-1, LLFT and

VKFT customers for each Customer's monthly

GSR Demand Surcharge Amount on or after the

tenth day of the month following the

effective date of the filing through the

applicable recovery period. Such GSR Demand

Surcharge Amount shall be calculated by

multiplying a Customer's MDQ for a month

times the GSR Demand Surcharge rate.

(ii) Except for any part of the payment obligation

of a Customer attributable to the GSR Demand

Surcharge component which has been designed

to be paid over a twenty-four (24) month

period as required by Section 15.2(C)(2)(a),

each Customer shall have the option of paying

its GSR Demand Surcharge obligation for any

quarter in twenty-four (24) consecutive

monthly installments equal to 1/24th of such

remaining GSR Demand Surcharge obligation.

Additional carrying charges on such amount

shall be calculated and included on each

monthly bill for those