Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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

First Rev Eleventh Revised Sheet No. 631 First Rev Eleventh Revised Sheet No. 631 : Effective

Superseding: Eleventh Revised Sheet No. 631

GENERAL TERMS AND CONDITIONS

(Continued)

15.4 Gas Research Institute (GRI) Surcharge Provision

(A) Purpose

GRI, an Illinois not for profit corporation has been organized for the purpose

of sponsoring Research, Development and Demonstration (RD&D) programs in the

field of natural and manufactured gas for the purpose of assisting all segments

of the gas industry in providing adequate, reliable, safe, economic and

environmentally acceptable gas service for the benefit of gas consumers and the

general public in the United States. Pipeline is a collection agent for GRI.

For the purpose of funding of GRI's approved expenditures for 1996 and 1997, and

subject to further terms and conditions set forth in the Stipulation and

Agreement Concerning Post-1993 GRI Funding Mechanism, the Orders approving such

Stipulation and Agreement found at Gas Research Institute, 62 F.E.R.C. Par.

61,280 (1993), reh'g 63 F.E.R.C. Par. 61,316 (1993), and the Order Approving

Funding Mechanism for 1996 and 1997, found at Gas Research Institute, 71

F.E.R.C. Par. 61,130 (1995), this Section 15.4 establishes a GRI Surcharge to be

collected for quantities of gas transported or injected under Pipeline's

applicable transportation and storage rate schedules for the calendar years 1996

and 1997; provided, however, such GRI Surcharge shall not be applicable (1) to

discounted transactions except as expressly provided below, (2) to Customers

which are interstate pipelines and which include in their rates a charge for

RD&D by GRI, (3) to the transportation of liquids and/or liquefiables or (4) to

service which is solely gathering service and provided, further, that a GRI

Surcharge shall not be applied to the same quantity of gas more than once.

(B) Basis of the GRI Surcharge

(1) Pipeline's applicable transportation and storage rate schedules shall

include an increment for a GRI Demand Surcharge and a GRI Commodity

Surcharge, as applicable, for RD&D for non-discounted transactions.

Pipeline will pay only the amount actually collected. Such GRI Surcharge

shall be that increment, adjusted to Pipeline's measurement basis

(dekatherms), which has been approved by Commission's Orders approving

GRI's RD&D expenditures. The GRI Surcharge shall be reflected on Sheet

Nos. 25, 26, 30, 31, 34B, 34C, 34D, 34E, 34F, 36, 37, 41, 41A, 42, 42A,

42B, 43, and 50 through 52 of this FERC Gas Tariff.

(2) As to discounted transactions, if the discounted rate is less than the GRI

Surcharge, Pipeline shall remit that portion of the GRI Surcharge actually

collected.