Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 12/01/2000, Docket: RP01- 69-000, Status: Effective

First Revised Sheet No. 629 First Revised Sheet No. 629 : Effective

Superseding: Original Sheet No. 629

GENERAL TERMS AND CONDITIONS

(Continued)

Reservation Charge basis when billed to Pipeline. Should Pipeline be charged

Account No. 191 transition costs by an upstream pipeline(s), Pipeline shall

allocate and bill such transition costs in accordance with the provisions of

Section 15.2(B).

(H) Exit Fee:

To the extent that a Customer desires to terminate an existing contract and

Pipeline agrees to such termination, Pipeline shall collect as part of the exit

fee facility costs pursuant to Section 15.2(E), restructuring implementation

costs pursuant to Section 15.2(F) and upstream pipeline transition costs

pursuant to Section 15.2(G), plus any associated carrying costs assigned or

allocated to and otherwise payable by the Customer, absent the termination. In

addition, Pipeline will collect all or a portion of the capacity Reservation

Charges otherwise recoverable by Pipeline from Customers for the balance of the

contractual term, absent such early termination.

15.3 Research and Development Adjustment

(A) Procedure for Computation of Adjustment:

The Research and Development (R&D) Adjustment shall be reflected in rates only

when it amounts to at least one tenth of one mill ($0.0001) per Dth of annual

jurisdictional throughput. The R&D Adjustment shall be applied to the commodity

component of all applicable rates and shall maintain historical rate design

concepts.

(1) Research and Development Chargeable to Operation

The R&D Adjustment shall reflect the amount which actual R&D expenditures

chargeable to operations during the twelve-month period ending three

months prior to the effective date of R&D Adjustment exceed or are less

than (a) the amount allowed in Pipeline's last rate proceeding or the

average of three years R&D expenditures for the initial filing under this

Section 15.3; or (b) the actual R&D expenditures in Pipeline's last R&D

Adjustment under this Section 15.3.

(2) Research and Development Includable in Rate Base

The R&D Adjustment shall reflect the amount which the actual balances in

Account No. 188 during the twelve-month period ending three months prior

to the effective date of R&D Adjustment exceed or are less than (a) the

amount allowed in Pipeline's last previous rate proceeding for the initial

filing under this