Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 01/01/1999, Docket: RP99-135-000, Status: Effective

First Revised Sheet No. 631A First Revised Sheet No. 631A : Effective

Superseding: Original Sheet No. 631A

GENERAL TERMS AND CONDITIONS

(Continued)

For purposes of discounted transactions, any GRI

Surcharge shall be considered to be the first component

of rates discounted.

(3) The applicable GRI Surcharge shall be determined for

high load factor firm Customers (load factor exceeding

fifty (50) percent) and low load factor firm Customers

(load factor of fifty (50) percent or less). The

Customer's load factor for each firm service agreement

shall be determined annually. The load factor shall be

calculated from actual firm quantities using the most

recent twelve (12) months of quantities available

(including quantities from assignment of service rights

pursuant to Section 3.14 herein) as a percent of firm

annual contractual entitlements. The Customer's load

factor determination shall remain in effect for the

ensuing calendar year. For firm Customers without a

historical load factor for purposes of the GRI

Surcharge, the GRI Surcharge shall be assessed each

month based on actual throughput for each prior month

of service until a twelve (12) month history is

established.

(C) Filing Procedure

The initial GRI Surcharge or any subsequent changes in such

GRI Surcharge shall be filed by Pipeline at least thirty

(30) days prior to the proposed effective date. The

proposed effective date of filings pursuant to this

subsection shall be the effective date prescribed by the

Federal Energy Regulatory Commission. Any such filing shall

not become effective unless it becomes effective without

suspension or refund obligation.

(D) Remittance to GRI

Pipeline shall remit to GRI, not later than fifteen (15)

days after the receipt thereof, all monies actually

collected and received by virtue of the GRI Surcharge and

the voluntary contribution mechanism, less any amounts

properly payable to a Federal, State or Local authority

relating to the monies received hereunder. In no event will

Pipeline be required to remit to GRI amounts not actually

collected. In addition, for the amounts received through

the voluntary contribution mechanism, Pipeline shall

indicate to GRI the amounts applicable to specific projects

and project areas, if so indicated by Customers.

(E) Payment by Customer

The amount of applicable Customer's GRI Surcharge shall be

due and payable with the bill for the month of each such

Customer.