Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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Effective Date: 05/17/2009, Docket: RP09-517-000, Status: Effective

First Revised Sheet No. 230C First Revised Sheet No. 230C

Superseding: Original Sheet No. 230C

GENERAL TERMS AND CONDITIONS

(Continued)

(2) Notice and Certification

Shipper must give Panhandle written notice no

more than thirty (30) days after Shipper

receives notice from its customer of a loss of

load, which notice shall state the contract

quantity reduction sought and the date that

Shipper anticipates it will lose the load. At

the time of such notice, Shipper must certify

with supporting data that:

(i) The load lost was actually served by the

Shipper with gas transported by Panhandle

on a firm basis as of the date that

Shipper's Service Agreement with Panhandle

became effective.

(ii) The reduction requested is equal to or

less than the actual load lost.

(iii) Shipper has used reasonable efforts to

release its capacity to Replacement Shippers,

by posting the capacity on the Messenger

system for thirty (30) days at the rate

provided for under the relevant Service

Agreement(s).

(3) Level of Reduction

Shipper may reduce its aggregate contract

quantity under all of its Service Agreements

with Panhandle by an amount up to the firm daily

contract quantity that was used to serve the

lost load. If the lost load is served by other

natural gas pipelines in addition to Panhandle,

Shipper may only reduce its contract quantity on

Panhandle by an amount that is prorated based on

the respective levels of firm transportation

service used to serve the lost load that Shipper

holds on Panhandle and such other natural gas

pipelines. If more than one Service Agreement

on Panhandle serves the lost load, any contract

quantity reduction shall be applied first to the

Service Agreement with the lowest rate, unless

otherwise agreed. Any reduction in contract

quantity shall result in a pro-rata reduction in

Shipper's quantities at primary Points of

Receipt and primary Points of Delivery, unless

otherwise agreed.