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. 67 Original Sheet No. 67 : Effective

RATE SCHEDULE IOS (Continued)

IN/OUT STORAGE SERVICE

3.6 Overrun Charge and Unauthorized Overrun Penalty

Shipper shall pay the overrun charge and, if applicable,

the Unauthorized Overrun Penalty per Dt. of Gas actually

delivered at the IOS Point and injected into Storage or

withdrawn from Storage and delivered at the IOS Point

during any Day in excess of the MDIQ and MDWQ set out in

the Service Agreement, as applicable. The Overrun Charge

per Dt. shall be as set forth on the effective Tariff

Sheet No. 9 and the Unauthorized Overrun Penalty shall be

as set forth in Sections 12.16 and 12.17 of the General

Terms and Conditions.

3.7 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.

9 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.

3.8 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. 9 for service hereunder.

3.9 Negotiated Rates

Shipper and Panhandle may agree, on a prospective basis,

to a Negotiated Rate with respect to the charges

identified in Sections 3.1, 3.2, 3.3 and 3.4 herein which

may be less than, equal to or greater than the Maximum

Rate; shall not be less than the Minimum Rate; may be

based on a rate design other than straight fixed variable;

and may include a minimum quantity. Such Negotiated Rate

shall be set forth on Exhibit A of the executed Service

Agreement and on the currently effective Tariff Sheet

No. 21. The Maximum Rate shall be available to any

Shipper that does not choose a Negotiated Rate.

Shippers paying a Negotiated Rate which exceeds the

Maximum Rate will be considered to be paying the Maximum

Rate for purposes of scheduling, curtailment and

interruption, and calculating the economic value of a

request for unsubscribed firm capacity. In addition,

a Shipper that does not agree to pay any surcharges

will not be granted a scheduling preference that deems