Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 06/30/2004, Docket: RP04-321-000, Status: Effective

Original Sheet No. 126 Original Sheet No. 126 : Effective

RATE SCHEDULE DVS (Continued)

DELIVERY VARIANCE SERVICE

3.3 Surcharges

DVS Party shall pay all surcharges specified in the

General Terms and Conditions or which otherwise may be

applicable to service under this Rate Schedule from time

to time.

3.4 Range of Rates

Unless otherwise agreed to in writing by the DVS Party

and Panhandle, any rate applicable to a DVS Party for

service hereunder, by reference to the effective Tariff

Sheet No. 18 shall be the applicable Maximum Rate set

forth thereon. If an amount less than the applicable

Maximum Rate is agreed upon, such amount shall be

applicable prospectively.

3.5 Fuel Reimbursement

DVS Party 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. 18 for service

hereunder.

3.6 Negotiated Rates

The DVS Party and Panhandle may agree, on a prospective

basis, to a Negotiated Rate with respect to charges

identified in Section 3.1 and 3.2 herein which may be

less than, equal to or greater than the Maximum Rate;

shall not be less than zero; and may be based on a rate

design other than straight fixed variable. Such

Negotiated Rate shall be set forth on Exhibit A of the

executed Service Agreement and on the currently effective

Tariff Sheet No. 21. The Maximum Rate shall be available

to any DVS Party that does not choose a Negotiated Rate.

Nothing in this Section 3.6 shall authorize Panhandle or

Shipper to negotiate terms and conditions of service.

4. MONTHLY BILL

The Monthly Bill for service under this Rate Schedule shall be

equal to the Reservation Charge, Commodity Charge and applicable

surcharges.