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. 95 Original Sheet No. 95 : Effective

RATE SCHEDULE FS

FLEXIBLE STORAGE SERVICE

1. AVAILABILITY

This Rate Schedule is available for Natural Gas Storage service

performed by Panhandle Eastern Pipe Line Company, LP (hereinafter

called Panhandle) for any party (hereinafter called Shipper) which

has executed a Service Agreement in the form prescribed under this

Tariff for service under this Rate Schedule for Storage service from

either Panhandle's Market Area Storage Facilities or Field Area

Storage Facilities.

2. APPLICABILITY AND CHARACTER OF SERVICE

This Rate Schedule shall apply to Gas made available by Shipper

to Panhandle under firm, interruptible or third party transportation

agreements at the applicable WS Point and nominated for Storage under

this Rate Schedule, subject to the General Terms and Conditions

herein and the further provisions of the Service Agreement. In

addition, where Shipper is utilizing a third party to make Gas

available for Storage in Panhandle's Market Area Storage Facilities

under this Rate Schedule, the Shipper may designate as the WS Point

an off-system Market Area Storage Facility that Panhandle has leased

from a third party, subject to operational feasibility, the terms and

conditions applicable to Panhandle's agreement with the third party

providing the off-system storage, the General Terms and Conditions

herein, and the further provisions of the Service Agreement.

The service provided hereunder consists of the injection of

Shipper's Gas into Storage at the applicable WS Point in Panhandle's

Market Area Storage Facilities or Field Area Storage Facilities, as

elected by the Shipper in the Service Agreement, and the subsequent

withdrawal from Storage of Shipper's Gas, at the applicable WS Point,

all on a firm basis. Injections may be made in accordance with the

FS Storage Agreement, subject to daily nomination by Shipper and

Available Maximum Stored Quantity. Withdrawals may be made in

accordance with the FS Storage Agreement, subject to daily nomination

by Shipper and Available Stored Volume. Injections and withdrawals,

other than as specifically provided for in the FS Storage Agreement

will be permitted on an interruptible basis, subject to Panhandle's

management of Storage to preserve deliverability. Maximum Daily

Withdrawal Quantities (MDWQ) and Maximum Daily Injection Quantities

(MDIQ) shall be in accordance with the FS Storage Agreement.

Shipper's Maximum Stored Quantity shall be a uniform quantity

throughout the term of the Service Agreement, except that Panhandle

may, but shall not be obligated to, agree on a not unduly

discriminatory basis to certain differing levels in Shipper's Maximum

Stored Quantity for specified periods during the term of the Service

Agreement. The effective period of each Maximum Stored Quantity

level shall be specified in the executed Service Agreement.

Available withdrawal quantities will vary according to the percentage

of Shipper's Stored Volume to the Maximum Stored Quantity in

accordance with the FS Storage Agreement.