Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 10/01/1998, Docket: RP85-177-127, Status: Effective

Second Revised Sheet No. 637 Second Revised Sheet No. 637 : Effective

Superseding: First Revised Sheet No. 637

GENERAL TERMS AND CONDITIONS

(Continued)

15.7 ARTICLES IV AND V ADJUSTMENTS

In accordance with and as approved by the Commission's May 12, 1994,

order approving the "Stipulation and Agreement" ("Settlement") filed

January 31, 1994, in Docket Nos. RP85-177-119, et al., as amended by the

"Joint Stipulation and Agreement Amending Global Settlement" ("1998

Amendment") filed April 28, 1998, and approved by the Commission's August

28, 1998 letter order in Docket Nos. RP98-198-000 and RP85-177-126,

Pipeline shall file applicable tariff sheets and supporting workpapers to

reflect adjustments to Pipeline's rates and Applicable Shrinkage

percentages. Except as provided in Articles IV and V of the Settlement

pertaining to the initial adjustments of Pipeline's rates and as provided

in the 1998 Amendment, such adjustments shall be made effective on December

1 of each year. Such adjustments shall be effective prospectively until

the effective date of Pipeline's subsequent filing pursuant to Articles IV

and V of the Settlement. Each change in Pipeline's rates pursuant to this

Section 15.7 shall become effective without suspension or refund condition,

provided that the Commission shall not be precluded from rejecting or

suspending any rate adjustment for failure to be consistent with terms of

the Settlement or the 1998 Amendment. The Settlement and 1998 Amendment

shall govern over Sections 15.2 and 15.6 of the General Terms and

Conditions, Sixth Revised Volume No. 1 with respect to non-Protesting

Parties, as that term is defined in the Settlement and 1998 Amendment, to

the extent such Sections may be inconsistent with the Settlement or the

1998 Amendment.