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. 89 Original Sheet No. 89 : Effective

RATE SCHEDULE GDS (Continued)

GENERAL DELIVERY SERVICE

(a) If on any Day the Quantities of Gas delivered at the Point

of Delivery vary from the Quantities nominated by Shipper

pursuant to Section 7 hereof for receipt under the

Transportation Agreement, adjusted for Fuel Reimbursement,

and if such variances exceed the Maximum Daily Withdrawal

Quantity or Maximum Daily Injection Quantity specified in

the Service Agreement hereunder, the Shipper shall be

subject to the Overrun Charge and, if applicable, the

Unauthorized Overrun Penalty in addition to the applicable

reservation and commodity charges. The Overrun Charges

shall be the rate as set forth on the effective Tariff

Sheet No. 9 multiplied by the Quantities of Gas that

exceed the MDWQ or the MDIQ, as applicable. The

Unauthorized Overrun Penalty shall be as set forth in

Section 12.16 of the General Terms and Conditions.

Shipper shall also be subject to monthly balancing charges

and the Unauthorized Overrun Penalty when Panhandle issues

an OFO as set forth in Sections 12.11 and 12.17 of the

General Terms and Conditions.

(b) Nothing in this Rate Schedule GDS shall permit Shipper to

take at its Point of Delivery, on any Day, Quantities of

Gas in excess of the MDCQ of its Transportation service

included in the GDS service hereunder or, in any hour, in

excess of any hourly swing limitation invoked by

Panhandle. Section 3.6 of Rate Schedule EFT and Rate

Schedule SCT regarding overruns of Transportation service

remain in effect for the Transportation service included

in GDS service.

5. RATES

The rates and charges for service under this Rate Schedule shall

include all of the applicable charges set forth in Rate Schedule EFT,

or Rate Schedule SCT, as applicable, and Rate Schedule IOS or an

eligible Storage Agreement under Rate Schedule FS. If Shipper also

specifies service under Panhandle's Rate Schedules WS, PS or other FS

for inclusion in the service provided hereunder, the rates and

charges for firm Storage service under these Rate Schedules shall

also be included under this Rate Schedule.