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. 116 Original Sheet No. 116 : Effective

RATE SCHEDULE HFT (Continued)

HOURLY FIRM TRANSPORTATION SERVICE

the MDCQ divided by the specified Hourly Delivery Period

set forth in the Service Agreement. The Hourly Delivery

Period shall be the minimum amount of time within which

Panhandle shall be required to deliver Shipper's MDCQ.

Shipper shall take the gas uniformly during the selected

Hourly Delivery Period.

2.4 Service at a designated Point of Delivery under this Rate

Schedule is limited to only one Service Agreement.

2.5 Service at the primary and secondary Point(s) of Receipt

and eligible Point(s) of Delivery shall be provided on a

firm basis subject to the scheduling, curtailment and

interruption provisions of this Rate Schedule and Sections

8 and 9 of the General Terms and Conditions.

2.6 In addition to the nomination timeline provisions of

Section 8 of the General Terms and Conditions, Shipper

must notify Panhandle Gas Control by telephone at least

three (3) hours prior to actual gas flow at the Point(s)

of Delivery designated for service under this Rate

Schedule.

2.7 Shipper may release all or a portion of its MDCQ pursuant

to Section 15 of the GT&C provided, however, any such

released capacity shall be subject to the terms and

conditions of this Rate Schedule HFT. Capacity may be

released for a minimum of one Day.

2.8 In no event shall Panhandle be obligated to provide any

Transportation or Gathering 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 service under this Rate Schedule HFT

shall be as follows:

3.1 Transmission Charge

If Shipper designates a Point(s) of Receipt or a Point(s)

of Delivery on the transmission portion of Panhandle's

system, Shipper shall pay a Monthly Transmission Charge

which consists of a reservation component and a commodity

component.