Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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

Original Sheet No. 226 Original Sheet No. 226 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(ii) If the Long-Term Agreement meets the

eligibility standards below and Shipper

agrees to match the bid having the greatest

economic value, as defined in Section 7.1(b)

hereof, for the firm service Shipper

receives, or any portion thereof, which

Panhandle has been offered in accordance

with Section 7.2(b) and executes a new

Service Agreement matching those terms. A

Long-Term Agreement for firm service is

eligible for the right of first refusal

provisions in this Section 7.2 if the Long-

Term Agreement (1) is in effect prior to

August 1, 2000 or (2) commences on or after

August 1, 2000 and the Long-Term Agreement

provides for twelve (12) or more Months of

consecutive service at the Maximum Rate

applicable to the service or, if the service

is not available for twelve (12) consecutive

Months, the Long-Term Agreement provides for

service for more than one year at the

Maximum Rate applicable to the service. If

a Shipper's Agreement does not qualify for

the right of first refusal under this

Section 7.2(a)(ii), then Panhandle in a not

unduly discriminatory manner may agree

otherwise with any such Shipper.

(b) The procedures specified in this Section 7.2(b) shall

be followed to determine whether a Long-Term

Agreement will be continued in accordance with

Section 7.2(a)(ii).

(i) Shipper must give timely notice that it

wants to continue service beyond the term of

the Agreement. For the notice to be timely,

Shipper must notify Panhandle within the

following periods:

Months Prior To

Stated Contract Term Contract Expiration

2 years or longer Not earlier than 18 Months

and

not later than 12 Months

Less than 2 years Not earlier than 9 Months

and

not later than 6 Months