Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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Effective Date: 06/30/2004, Docket: RP04-321-000, Status: Effective

Original Sheet No. 32 Original Sheet No. 32 : Effective

RATE SCHEDULE FT (Continued)

FIRM TRANSPORTATION SERVICE

(c) If both the Point(s) of Receipt and the Point(s) of

Delivery are located within the Field Zone, the

applicable rates shall be as set forth on the

effective Tariff Sheet No. 4 for service within the

Field Zone only; if both the Point(s) of Receipt and

Point(s) of Delivery are located within the Market

Zone, the applicable rates shall be as set forth on

effective Tariff Sheet No. 4 for service within the

Market Zone only; if the Point(s) of Receipt and the

Point(s) of Delivery are located in different zones,

the applicable rates shall be derived by adding the

effective rates for service in the Field Zone and the

Market Zone.

3.2 Gathering Charge

If Shipper designates primary Point(s) of Receipt or

Point(s) of Delivery on the Gathering portion of

Panhandle's system or utilizes the Gathering portion of

Panhandle's system for firm service hereunder, Shipper

shall pay a Monthly Gathering Charge which shall consist

of a reservation component and a commodity component.

(a) The reservation component of the Gathering Charge

shall be the product of the MDCQ times the applicable

reservation rate per Dt. as set forth on the

effective Tariff Sheet No. 4. The reservation

component shall be pro rated for the first and last

contract Months to adjust for the number of Days

during the Months service was available.

(b) The commodity component of the Gathering Charge shall

be the product of the actual Quantity of Gas

delivered during the Month times the applicable

commodity rate per Dt. as set forth on the effective

Tariff Sheet No. 4.