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. 96 Original Sheet No. 96 : Effective

RATE SCHEDULE FS (Continued)

FLEXIBLE STORAGE SERVICE

The available Stored Volume shall be increased, up to the

Maximum Stored Quantity, by the Quantity of Gas Shipper transfers

into FS Storage in accordance with Section 14.2 of the General Terms

and Conditions. The available Stored Volume shall be reduced by the

Quantity of Gas Shipper transfers out of FS Storage in accordance

with Section 14.2 of the General Terms and Conditions.

In no event shall Panhandle be obligated to provide any Storage

service for which capacity is not available or which would require

the construction or acquisition of new facilities or the modification

or expansion of existing facilities.

3. RATES

The rates and charges for Storage service under this Rate

Schedule from Panhandle's Market Area Storage Facilities and Field

Area Storage Facilities shall be as follows:

3.1 Capacity Charge

Shipper shall pay a Monthly Capacity Charge which shall be

the product of 1/12th the Maximum Stored Quantity times

the applicable capacity charge per Dt. as set forth on the

effective Tariff Sheet No. 14.

3.2 Deliverability Charge

Shipper shall pay a Monthly Deliverability Charge which

shall be the product of the Maximum Daily Withdrawal

Quantity set out in the FS Storage Agreement times the

applicable deliverability charge per Dt. as set forth on

the effective Tariff Sheet No. 14.

3.3 Injection Charge

Shipper shall pay an Injection Charge which shall be the

product of the Quantity of Gas actually received from

Shipper at the WS Point and injected into Storage during

the Month times the applicable injection charge per Dt. as

set forth on the effective Tariff Sheet No. 14.