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. 213 Original Sheet No. 213 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

3. QUALITY OF GAS

3.1 Gas received and delivered shall be merchantable Natural

Gas; shall be free of water and liquid hydrocarbons; shall

contain not more than 7 pounds of water vapor per MMcf,

1.0 grain of hydrogen sulphide and 20 grains of total

sulphur (reduced by sulphur caused by odorization

equipment) per 100 cubic feet, 2% of carbon dioxide (by

volume), and 50 parts per million of oxygen; shall not

contain any active bacteria or bacterial agent, including

but not limited to sulphate reducing bacteria and acid

producing bacteria; shall not contain any hazardous or

toxic substances; and shall not exceed 120ø Fahrenheit in

temperature. The Gas shall have a total or gross heating

value of not less than nine hundred fifty (950) Btu and

not more than one thousand two hundred (1,200) Btu per

cubic foot at the Point of Receipt. Panhandle shall not

be obligated to accept Gas for Transportation or Storage

which does not meet these quality provisions. Shipper

shall reimburse Panhandle for any loss, cost, damage, or

expense incurred by Panhandle as a direct or indirect

result of Shipper's failure to comply with the provisions

of this Section 3.1.

3.2 If the Gas offered for Transportation by Shipper fails at

any time to conform to any of the specifications set forth

herein, then Panhandle shall have the right, either by

written, oral or telephonic notice to Shipper, to refuse

to accept all or any portion of such quality deficient

Gas. If Panhandle refuses to accept Gas tendered by

Shipper because such Gas does not conform to the

specifications set forth herein, Shipper shall not be

relieved of its obligation to pay any Access, Reservation,

Transmission or Gathering charges or any other applicable

charge in Panhandle's tariff, Rate Schedules or Service

Agreements.