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. 103 Original Sheet No. 103 : Effective

RATE SCHEDULE LFT (Continued)

LIMITED FIRM TRANSPORTATION SERVICE

3.2 Gathering Charge

If Shipper designates primary Point(s) of Receipt or

Point(s) of Delivery on the Gathering portion of

Panhandle's system or utilizes the Gathering portion of

Panhandle's system for firm service hereunder, Shipper

shall pay a Monthly Gathering Charge which shall consist

of a reservation component and a commodity component.

(a) The reservation component of the Gathering Charge

shall be the product of the MDCQ times the applicable

reservation rate per Dt. as set forth on the

effective Tariff Sheet No. 15. The reservation

component shall be pro rated for the first and last

contract Months to adjust for the number of Days

during the Months service was available.

(b) The commodity component of the Gathering Charge shall

be the product of the actual Quantity of Gas

delivered during the Month times the applicable

commodity rate per Dt. as set forth on the effective

Tariff Sheet No. 15.

If Shipper designates a Point(s) of Receipt on the

Gathering portion of Panhandle's system as a secondary

firm Point(s) of Receipt pursuant to Section 10.3(c) of

the General Terms and Conditions, the otherwise applicable

charges shall also include the Gathering commodity rate

and overrun charge per Dt. as set forth on the effective

Tariff Sheet No. 15.

3.3 Special Rate for Limited Class of Backhaul Service

For firm service hereunder for all volumes received at or

East of Tuscola and delivered on Panhandle's Transmission

facilities at or West of the Haven, Kansas Compressor

Station, the rate charged shall be one-half the applicable

Transmission charge per Dt. as set forth on the effective

Tariff Sheet No. 15. Backhaul services provided which do

not satisfy the foregoing specified criteria shall be

charged the generally applicable rate.