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. 120 Original Sheet No. 120 : Effective

RATE SCHEDULE HFT (Continued)

HOURLY FIRM TRANSPORTATION SERVICE

This charge shall not apply to takes in excess of the

Hourly Delivery Quantity if such excess Quantity has

been nominated and scheduled in accordance with

Section 8 of the General Terms and Conditions herein.

3.7 Range of Rates

Unless otherwise agreed to in writing by Shipper and

Panhandle, any rate applicable to a Shipper for service

hereunder, by reference to the effective Tariff Sheet No.

17 shall be the applicable Maximum Rate(s) set forth

thereon. If an amount less than the applicable Maximum

Rate(s) and not less than the applicable Minimum Rate(s)

is agreed upon, such amount shall be applicable

prospectively.

3.8 Fuel Reimbursement

Shipper shall reimburse Panhandle in kind for fuel usage

and lost or unaccounted for Gas pursuant to the terms and

conditions of the Service Agreement and as stated on the

effective Tariff Sheet No. 17 for service hereunder.

3.9 Balancing Charges

If balancing charges are incurred in accordance with

Section 12 of the General Terms and Conditions, then such

balancing charges shall also be applicable.