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. 52 Original Sheet No. 52 : Effective

RATE SCHEDULE SCT (Continued)

SMALL CUSTOMER TRANSPORTATION SERVICE

quantities) for firm service hereunder, Shipper shall

be subject to an Overrun Charge in addition to the

applicable commodity charge and any balancing charges

that may be applicable pursuant to Section 12 of the

General Terms and Conditions. The applicable charge

per Dt. for such overrun quantities shall be as set

forth on the effective Tariff Sheet No. 6. In

addition, subject to the provisions of Section 3.6(c)

of this Rate Schedule, Shipper shall be subject to an

Unauthorized Overrun Penalty as set forth in Section

12.16 of the General Terms and Conditions.

(b) Takes in Excess of Permissible Hourly Deliveries

If, pursuant to Section 5 hereof, Shipper has been

notified that it must limit takes to one-sixteenth of

the Quantities nominated for delivery at the Point(s)

of Delivery, Shipper must use its best efforts to

limit its takes to one-sixteenth of the Quantities

nominated for delivery at the Point(s) of Delivery as

soon as possible, but in no event later than two

hours following notification. If, after such two

hours, the Shipper's takes exceed such hourly

limitation for any hour during the next twenty-four

hour period, Shipper shall pay the overrun charges as

set forth on the effective Tariff Sheet No. 6, in

addition to the applicable commodity rates.

(c) Unauthorized Overrun Penalty for Takes During an OFO

Panhandle may issue an OFO and, if it does so,

Panhandle shall notify Shippers through the

Messenger system, the Web Site and by telephone,

and facsimile or via e-mail communication. Once

issued the OFO shall continue until Panhandle

notifies Shippers to the contrary using the above

methods. If the OFO requires the elimination of

unauthorized overruns, the applicable Unauthorized

Overrun Penalty shall be as set forth in Section

12.17(f)(ii) of the General Terms and Conditions.