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. 90 Original Sheet No. 90 : Effective

RATE SCHEDULE GDS (Continued)

GENERAL DELIVERY SERVICE

6. MONTHLY BILL

The Monthly Bill for the service provided hereunder shall be

equal to all of the charges set out in the Monthly Bill of 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 Rate Schedules WS, PS or other FS for service

hereunder, then the Monthly Bill for the service provided hereunder

shall also include all of the charges set out in the Monthly Bill of

Rate Schedules WS, PS and other FS. In addition, the Monthly Bill

for service provided hereunder shall also include Storage and

Transportation Overrun Charges and Unauthorized Overrun Penalties

specified in Section 4.

7. OPERATING PLAN

For each Month during the term of the Service Agreement under

this Rate Schedule, Panhandle and Shipper shall develop a Monthly

operating plan. Under the operating plan, Shipper shall be

responsible for nominating and scheduling Quantities of Gas under

Rate Schedule EFT or Rate Schedule SCT at the Point(s) of Receipt and

providing a Storage use priority plan for service under Rate Schedule

IOS, service under Rate Schedule WS, service under Rate Schedule PS

or service under Rate Schedule FS.

If Shipper and Panhandle fail to agree on a Storage use priority

plan prior to five Days before the beginning of a Month Panhandle

shall use the following priority schedule for allocation of actual

volumes to the underlying services:

Winter Period -

1st - EFT or SCT, up to nominations at the

Point(s) of Receipt, less Fuel Reimbursement

then,

2nd - WS withdrawals (if applicable) then,

3rd - PS withdrawals (if applicable) then,

4th - FS withdrawals (if applicable) then,

5th - IOS or eligible FS

withdrawals/injections

Summer Period -

1st - PS injection (if applicable) then,

2nd - FS injection (if applicable) then,

3rd - WS injection (if applicable) then,

4th - EFT or SCT deliveries then,

5th - IOS or eligible FS

injections/withdrawals