Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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

Original Sheet No. 49 Original Sheet No. 49 : Effective

RATE SCHEDULE SCT (Continued)

SMALL CUSTOMER TRANSPORTATION SERVICE

2. APPLICABILITY AND CHARACTER OF SERVICE

This Rate Schedule shall apply to the firm Transportation and

Gathering of Natural Gas on Panhandle's system, subject to the

General Terms and Conditions herein and the further provisions of the

Service Agreement.

The service provided by Panhandle under this Rate Schedule

consists of the receipt of Natural Gas by Panhandle at the Point(s)

of Receipt located on Panhandle's system and specified in the

executed Service Agreement and the delivery of such Gas, after

appropriate reductions, at the Point(s) of Delivery located on

Panhandle's system and specified in the executed Service Agreement up

to the Maximum Daily Contract Quantity (MDCQ) set out in the executed

Service Agreement (not to exceed 10,000 Dt. per Day) on a basis

consistent with Section 5 hereof. Shipper's MDCQ shall be a uniform

quantity throughout the term of the Service Agreement, except that

Panhandle may, but shall not be obligated to, agree on a not unduly

discriminatory basis to certain differing levels in Shipper's MDCQ

for specified periods during the term of the Service Agreement. The

effective period of each MDCQ level shall be specified in the

executed Service Agreement.

Service provided at the primary and secondary Point(s) of

Receipt and Point(s) of Delivery shall be provided on a firm basis

subject to the scheduling, curtailment and interruption provisions of

Sections 8 and 9 of the General Terms and Conditions.

In no event shall Panhandle be obligated to provide any

Transportation or Gathering service for which capacity is not

available or which would require the construction or acquisition of

new facilities or the modification or expansion of existing

facilities.

3. RATES

The rates and charges for service under this Rate Schedule SCT

shall be as set forth in this Section 3. All such rates and charges

shall be determined based upon the Shipper's designation of its

Primary Point(s) of Receipt and Primary Point(s) of Delivery without

regard to the actual Points of Receipt or Delivery, except that

Receipts or Deliveries of Gas outside the Shipper's Primary Path

shall be charged at such higher rate, if any, as would be applicable

had the actual Receipt or Delivery Point been designated as a Primary

Point.