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. 220 Original Sheet No. 220 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

operating under any chapter of the bankruptcy laws

and is not subject to litigation or debt reduction

procedures under state laws, such as an assignment

for the benefit of creditors, or any informal

creditors' committee agreement. An exception can be

made for a Shipper who is a debtor in possession

operating under Chapter XI of the Federal Bankruptcy

Act but only with adequate assurance that the service

billing shall be paid promptly as a cost of

administration under the Federal Court's

jurisdiction.

(d) Shipper shall confirm in writing that it is not

subject to any uncertainty in any pending liquidation

or regulatory proceedings in state or Federal courts

or is not aware of any change in business conditions

which could cause a substantial deterioration in its

financial condition, a condition of insolvency or the

inability to exist as an on-going business entity.

(e) If Shipper has an on-going business relationship with

Panhandle, no delinquent balances should be

outstanding for services provided previously by

Panhandle and Shipper must have paid its account

balances according to the established terms and not

made deductions or withheld payment for claims not

authorized by contract.

(f) Shipper shall confirm in writing that no significant

collection lawsuits or judgments are outstanding

which would seriously reflect upon the business

entity's ability to remain solvent.

6.3 Upon notification by Panhandle that Shipper has failed to

satisfy the credit criteria, or subsequently during the

term of the Service Agreement no longer satisfies the

credit criteria such Shipper may still obtain credit

approval by Panhandle if it elects to provide one of the

following: (a) an advance deposit; (b) a Standby