Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 02/18/1996, Docket: RP96-117-000, Status: Effective

Third Revised Sheet No. 626 Third Revised Sheet No. 626 : Effective

Superseding: Second Revised Sheet No. 626

GENERAL TERMS AND CONDITIONS

(Continued)

Customers electing the twenty-four (24) month

payment option. Monthly amounts shall be

payable on the 20th of each month following

submission of the bill referred to in

paragraph (i). Any Customer may, at any

time, pay all or a portion of its unpaid GSR

Demand Surcharge Amount and in such event its

obligation for carrying charges shall be

applicable only to amounts unpaid. Carrying

charges on unpaid principal amounts for those

Customers electing to extend their payments

hereunder shall be determined using the

methods specified in Section 154.403(c)(7) of

the Commission's Regulations.

(iii) Should Customer fail to pay any amount on the

date due hereunder, additional interest

thereon shall accrue at the rate computed

using the factors specified in Section

154.403(c)(7) of the Commission's

Regulations, until such time as the full

amount due has been paid or collected.

(iv) Regardless of whether the Customer elects the

three (3) month or twenty-four (24) month

payment option the GSR Demand Surcharge

Amounts hereunder together with the

applicable carrying charges, shall accrue in

full as of the effective date of any

quarterly filing, shall be unaffected by, and

shall remain in effect following, any

expiration or termination of Customer's

service agreement with Pipeline.

Notwithstanding anything herein or in any

contract to the contrary, Pipeline shall have

the right to sell or assign to a third party

or parties amounts payable hereunder by any

Customer.

(b) Ten percent (10%) of such Gas Supply Realignment

Costs shall be reflected in revised rates for Rate

Schedules PTI, IT-1, LLIT and VKIT service which

shall be designed to recover over the following

twenty-four (24) months said ten percent (10%) of

Pipeline's Gas Supply Realignment Costs. A

portion of the Rate Schedule PTI, IT-1, ISS-1,

LLIT and VKIT revenue as determined pursuant to

Section 15.2(C)(4) shall be credited to the

recovery of Gas Supply Realignment Charges

collected by Pipeline.

(c) Any Gas Supply Realignment Costs actually incurred

and recovered from Customers under Rate Schedules

CDS, FT-1, LLFT and VKFT but subsequently required