Texas Gas Pipe Line Corporation

Third Revised Volume No. 1

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Effective Date: 06/01/1990, Docket: RP90-112-001, Status: Effective

Substitute Original Sheet No. 7 Substitute Original Sheet No. 7 : Effective

Superseding: Original Sheet No. 7









This rate schedule is available to Texas Eastern Transmission

Corporation (hereinafter called Buyer) for the purchase of natural

gas from Texas Gas Pipe Line Corporation (hereinafter called Seller)

in the State of Texas.




This rate schedule shall apply to all gas sold by Seller to

Buyer. Deliveries on any day up to the Daily Contract Maximum

specified by the executed service agreement shall be considered





The rate shall be per Mcf delivered by Seller to Buyer.

The unit rate shall be as set forth from time to time in the

currently effective Sheet No. 4 of this FERC Gas Tariff, Third

Revised Volume No. 1, which rate is incorporated herein by reference.




The minimum annual bill shall be on a calendar year basis (or

any part thereof during which this provision is effective) and the

amount due, if any, shall be equal to the products of (a) and (b)



(a) The rate specified in Section 3 of this rate

schedule,excluding those variable costs associated

with gas not taken by the Buyer included in such rate;


(b) the volume, if any, by which the minimum annual

volume (computed by multiplying 75% of the

applicable Daily Contract Maximum by the number

of days during the calendar year that the applicable

Daily Contract Maximum was in effect) exceeds the

volume of gas received and purchased by Buyer

from Seller under this Rate Schedule during the

calendar year or any applicable part thereof.


Seller shall render a statement to Buyer of any payments due, if

any, under this provision for the preceding calender year on or

before each February 15th and Buyer shall pay such amount within

_____ days of receipt of such statement.


In no event, however, shall Buyer be required by the specified

minimum annual bill to pay for any gas not taken by it unless Seller

shall have such quantities of gas available for delivery; nor shall

Buyer be required to pay for any gas not taken by it when such

failure to take has been caused by Force Majeure conditions as

specified in Section 8 of the General Terms and Conditions.