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. 91 Original Sheet No. 91 : Effective

RATE SCHEDULE GDS (Continued)

GENERAL DELIVERY SERVICE

The operating plan shall authorize Panhandle to schedule the

injection of Gas into IOS Storage or an eligible Storage Agreement

under Rate Schedule FS, (if Shipper has delivered sufficient Gas to

Panhandle) and/or the withdrawal of Gas from IOS Storage or an

eligible Storage Agreement under Rate Schedule FS, (up to Shipper's

Stored Volume) for Shipper's account, in accordance with the

operating plan, without further nominations from Shipper. In the

event that imbalances or overruns occur due to insufficient actual

receipts, insufficient Stored Volume, insufficient Maximum Stored

Quantity or any other reason, the Monthly balancing charges and

Overrun Charges set out in the underlying agreements and the General

Terms and Conditions, as well as any Storage Overrun Charges and

Unauthorized Overrun Penalties, as defined in Section 4(a) hereof,

shall be applicable. Daily Scheduling Charges which would otherwise

apply under Rate Schedules EFT and SCT shall not apply under this

Rate Schedule GDS. As a part of the operating plan hereunder,

Shipper may provide Panhandle with written authorization to nominate

receipts of Gas on Shipper's behalf at any Point(s) of Receipt on

Panhandle's system at which Panhandle agrees that Shipper has a

contract for Gas purchases and at which receipts can be verified on a

"real time" basis. If so authorized, Panhandle will permit the

operating plan to include a ranking for "intra-day" nomination of

receipts at such point(s), in accordance with Section 8.2 of the

General Terms and Conditions. GDS service based on such receipts is

conditioned upon verification of such receipts and Shipper will

remain liable for storage Overrun Charges and Unauthorized Overrun

Penalties in the event its supplier does not perform in accordance

with the nominations so tendered by Panhandle on Shipper's behalf.

8. 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.

9. 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.