Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 08/01/1999, Docket: RP99-418-000, Status: Effective

Second Revised Sheet No. 650 Second Revised Sheet No. 650 : Effective

Superseding: First Revised Sheet No. 650

GENERAL TERMS AND CONDITIONS

(Continued)

may agree upon one of the following allocation methodologies: ranked, pro rata,

percentage, swing and Operator provided value. Pipeline will accept the PDA if

operationally or administratively feasible. Pipeline shall allow multiple

levels of PDAs at each Point of Receipt or Point of Delivery. Pipeline shall

accept Submitting Entity's PDA when such PDA provides for allocation of gas

quantities among Customer'(s) scheduled quantities at such Point(s) of Receipt

or Point(s) of Delivery (hereinafter called "Allocated Entities"). For example,

typical allocation levels are set forth below:

POINT(S) OF RECEIPT

Submitting Entity Allocated Entities

Point Operator to Source(s)

(e.g. Producer)

Source(s) 1 to Source(s) 2

(e.g. Last seller)

Source(s) 2 to Customer(s)

Customer(s) to Customer's service

agreements

POINT(S) OF DELIVERY

Submitting Entity Allocated Entities

Point Operator to Customer'(s) service

agreements

Customer'(s) service to End users

agreements

Any PDA submitted shall be effective for the term specified in such PDA,

provided that such term may not cover a period of less than one day or longer

than the nomination period. In addition to being mutually agreeable to

Pipeline, for Point(s) of Delivery the Point Operator must provide to Pipeline a

letter from all Customers with firm contractual rights at such Point of Delivery

permitting the Point Operator to submit PDA's for all Customers tendering gas at

such Point(s) of Delivery. The agreement will be binding upon all Customers

whether firm or interruptible and including any assignees of the Customers and

must be