Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 08/01/1994, Docket: RP94-314-000, Status: Effective

First Revised Sheet No. 351 First Revised Sheet No. 351 : Effective

Superseding: Original Sheet No. 351




(B) Monthly Usage Charge consisting of the sum of the following

daily charges:


(1) The Usage-2 Charge Rate, as set forth on Sheet No. 50,

multiplied by that portion of the total quantity of gas

deliveries on any day pursuant to the executed service

agreement, which is in excess of 110% of scheduled

service levels for such day.


(C) System Expansion Adjustment:


The Reservation Charge, in Section 3.2(A) above, reflects

the costs of all system expansions pursuant to Section 10,

herein. The Reservation Charge shall be automatically

adjusted to reflect the impact of each such system expansion

completed pursuant to FERC certificate authorization.


3.3 In the event that the service agreement is effective on a date

other than the first day of the month or the date of any subsequent change

in Customer's MDQ is other than the first day of the month, then, for that

initial month, the Reservation Charge hereunder shall be prorated based on

the ratio of the number of days remaining in that month starting with and

including the effective date of the service agreement to the total number

of days in the month in which the initial service occurs. A similar

proration shall be made for the last month of the term of the FTS-7 Service

Agreement if the last day of such term occurs on a day other than the last

day of a month.


3.4 Except as provided in Section 3.5 of this Rate Schedule, in the

event Pipeline fails to deliver on any one day at least 95% of the quantity

of gas requested to be delivered by Pipeline at Point(s) of Delivery which

Pipeline is obligated to deliver on a firm basis at such Point(s) of

Delivery on such day up to the MDQ, the Reservation Charge shall be

decreased by the amount of the Reservation Charge Adjustment (as set forth

on Sheet No. 50 of Pipeline's FERC Gas Tariff, Volume No. 1, as such sheet

may be revised, superseded or supplemented from time to time) multiplied by

the quantity of gas not delivered up to the lesser of the total quantity of

gas requested and not delivered, or the MDQ.