Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

Effective Date: 02/23/2009, Docket: RP09-256-000, Status: Effective

First Revised Sheet No. 68 First Revised Sheet No. 68

Superseding: Original Sheet No. 68

RATE SCHEDULE IOS (Continued)

IN/OUT STORAGE SERVICE

such surcharges have been paid. Replacement Shippers are

not eligible for Negotiated Rates. Replacement Shippers may

bid or pay a rate greater than Maximum Rate if the release

of capacity is for a period of one year or less and the

release is to take effect on or before one year from the

date on which Panhandle is notified of the release.

In the event that capacity subject to a Negotiated Rate

which is based on a rate design other than straight fixed

variable is released, Shipper and Panhandle may agree on

billing adjustments to the Releasing Shipper that may vary

from or are in addition to those set forth in Section 15.6

of the General Terms and Conditions in order to establish

the basis of accounting for revenues from a Replacement

Shipper as a means of preserving the economic bases of

the Negotiated Rate. Such payment obligation and

crediting mechanism for capacity release shall be set

forth on Exhibit A of the executed Service Agreement.

Nothing in this Section 3.9 shall authorize Panhandle or

Shipper to negotiate terms and conditions of service.

4. MONTHLY BILL

The Monthly Bill for service under this Rate Schedule shall be

equal to the capacity charge, the deliverability charge, the

injection charge, the withdrawal charge, any overrun 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.

6. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions of Panhandle's FERC Gas Tariff

are applicable to this Rate Schedule and are hereby made a part

hereof.