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. 118 Original Sheet No. 118 : Effective

RATE SCHEDULE HFT (Continued)

HOURLY FIRM TRANSPORTATION SERVICE

(b) The commodity component of the Gathering Charge shall

be the product of the actual Quantity of Gas

delivered during the Month and the applicable

commodity rate per Dt. as set forth on the effective

Tariff Sheet No. 17.

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. 17.

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. 17. Backhaul services provided which do

not satisfy the foregoing specified criteria shall be

charged the generally applicable rate.

3.4 Transportation Involving Pooling

The rates for firm Transportation under Rate Schedule HFT

involving pooling, as set forth in Section 14 of the

General Terms and Conditions, shall be as specified in

this Section 3; provided that the rates charged for

service under a Pooling Transportation Agreement shall not

include the Field Zone Transmission Charges, so long as

title to such Gas passes to another Shipper and the

Quantities of Gas are delivered for immediate receipt and

subsequent Transportation on Panhandle's system under a

Service Agreement to which the Field Zone Transmission

Charges apply. If the Pooling Shipper notifies Panhandle

in writing at the time its initial nomination for the

Month is submitted that it has agreed to pay the Field

Zone charges, such charges shall not apply to the

Quantities transported under the Corresponding

Transportation Agreement but shall apply to the Pooling

Transportation Agreement for such Month. In addition, if

the Corresponding Shipper notifies Panhandle in writing at

the time its initial nomination for the Month is submitted

that it has agreed to pay the Gathering charges, such

charges shall not apply to the Quantities transported

under the Pooling Transportation Agreement but shall apply

to the Corresponding Transportation Agreement for such

Month.