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. 58 Original Sheet No. 58 : Effective

RATE SCHEDULE IT (Continued)

INTERRUPTIBLE TRANSPORTATION SERVICE

3.6 Range of Rates

Unless otherwise agreed to in writing by Shipper and

Panhandle, any rate applicable to a Shipper for service

hereunder, by reference to the effective Tariff Sheet No.

7 shall be the applicable Maximum Rate(s) set forth

thereon. If an amount less than the applicable Maximum

Rate(s) and not less than the applicable Minimum Rate(s)

is agreed upon, such amount shall be applicable

prospectively.

3.7 Fuel Reimbursement

Shipper shall reimburse Panhandle in kind for fuel usage

and lost or unaccounted for Gas pursuant to the terms and

conditions of the Service Agreement and as stated on the

effective Tariff Sheet No. 7 for service hereunder.

3.8 Balancing Charges

If balancing charges are incurred in accordance with

Section 12 of the General Terms and Conditions, then such

balancing charges shall also be applicable.

4. MONTHLY BILL

The Monthly Bill for service under this Rate Schedule shall be

equal to the Transmission Charge, the Gathering Charge, any

applicable balancing charges plus all applicable surcharges.

5. RESERVATIONS

Panhandle reserves the right from time to time to unilaterally

make any changes to, or to supersede, the rates and charges and other

terms in this Rate Schedule and the other provisions of Panhandle's

FERC Gas Tariff, and the applicability thereof, subject to the

provisions of the Natural Gas Act and the Commission's Regulations

thereunder.