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. 216 Original Sheet No. 216 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

4.3 All measuring stations shall be acceptable to Panhandle

and Shipper and installed and operated to conform to

recognized industry standards, using flange connections

and, where necessary, pulsation dampening equipment.

Auxiliary equipment shall be installed so as not to

interfere with the measurement of either party.

4.4 Either Panhandle or Shipper may witness the installation

or maintenance of the other's equipment. Neither

Panhandle nor Shipper shall be required to verify accuracy

more often than once during any 30 Day period. If, upon

test, accuracy is found to be within 2% by volume

(chromatograph/calorimeter within 0.5%), measurements

taken by such equipment shall be assumed to have been

accurate. Any error exceeding these percentages shall

require correction to zero error of previous recordings

back to the date error began. If the beginning date of

error is unknown, correction shall extend to one-half the

time since the last test, not to exceed 16 Days.

4.5 Where wellhead compressors have been installed, the

maximum permissible Square Root Error Indicator (SREI)

shall be no greater than 1% for volumes less than 2 MMcf

per Day and .5% for volumes greater than 2 MMcf per Day.

The SREI shall be determined by tests at the orifice taps

and shall be performed on the full operating range of the

compressor.