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. 93 Original Sheet No. 93 : Effective

RATE SCHEDULE TBS (Continued)

TRANSPORTATION BALANCING SERVICE

Five Days prior to the beginning of each Month, Shipper must

provide to Panhandle a schedule of the designated Transportation

Agreements which shall utilize the Transportation Balancing Service

during the next Month. When multiple Transportation Agreements are

to be balanced, Shipper must provide the allocation scheme for

applying the Transportation Balancing Service. The allocation method

for the designated Transportation Agreements must be either (1) pro-

rata based upon delivery nominations or (2) a fixed percentage,

unless otherwise agreed to by Panhandle.

Throughout the applicable Month, when Shipper's receipts and

deliveries under its Transportation Agreements are not in balance,

Panhandle shall be authorized to schedule the injection of Gas into

IOS Storage and/or the withdrawal of Gas from IOS Storage for

Shipper's account, without further nominations from Shipper. Such

injections or withdrawals shall be allocated to out-of-balance

designated Transportation Agreements in order to achieve a balance,

to the extent permitted by Shipper's MSQ, MDIQ, MDWQ and Stored

Volume. If imbalances or overruns occur due to insufficient

confirmed receipts, insufficient IOS Stored Volume, insufficient

Maximum Stored Quantity, insufficient MDIQ or MDWQ or for any other

reason, the balancing and overrun charges set out in the designated

Service Agreements and the General Terms and Conditions shall be

applicable to Shipper.

If, as of the first Day of any Month, any of the designated

Transportation Agreements has a Monthly imbalance in excess of a

contract's MAIQ or MMIQ, then Panhandle shall be authorized to

schedule the injection of Gas into IOS Storage and/or the withdrawal

of Gas from IOS Storage for Shipper's account, without further

nominations from Shipper. Such injections or withdrawals shall be

allocated to the out-of-balance designated Transportation Agreements

in order to achieve a balance within MAIQ or eliminate the MMIQ, to

the extent permitted by Shipper's MSQ, MDIQ, MDWQ and Stored Volume.

If imbalances in excess of MAIQ or MMIQ persist due to insufficient

confirmed receipts, insufficient IOS Stored Volume, insufficient

Maximum Stored Quantity or for any other reason, the Monthly

imbalance provisions set out in the designated Service Agreements and

the General Terms and Conditions shall be applicable to Shipper.