Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RP93-192-005, Status: Effective

2nd Sub Original Sheet No. 627A 2nd Sub Original Sheet No. 627A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(4) To determine pursuant to Section 15.2(C)(3)(b) whether

Pipeline has recovered Gas Supply Realignment Costs

pursuant to Rate Schedules PTI, IT-1, ISS-1, LLIT and

VKIT, Pipeline shall compare total PTI, IT-1 and ISS-1

revenues during the twelve (12) month period ending

June 30 against the cost of service allocated to be

recovered from Rate Schedules PTI, IT-1 and ISS-1

excluding Gas Supply Realignment Costs. Pipeline shall

separately compare Rate Schedule LLIT and VKIT revenues

during the twelve (12) month period ending June 30

against the cost of service allocated to be recovered

from each Rate Schedule LLIT and VKIT, respectively.

To the extent revenues derived from any of the

comparisons described above exceeds such cost of

service allocation, excluding Gas Supply Realignment

Costs, Pipeline shall consider such excess revenue,

less applicable surcharges and variable costs incurred

in providing the service, to be recovery of the Gas

Supply Realignment Costs allocated to Rate Schedules

PTI, IT-1, ISS-1, LLIT and VKIT for such period.

Ninety percent (90%) of any additional excess revenue,

less applicable surcharges and variable costs incurred

in providing the service, shall also be considered

recovery of Gas Supply Realignment Costs and shall be

credited against