Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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Effective Date: 04/22/2006, Docket: RP06-275-000, Status: Effective

First Revised Sheet No. 230G First Revised Sheet No. 230G : Effective

Superseding: Original Sheet No. 230G

GENERAL TERMS AND CONDITIONS

(Continued)

(e) To be eligible for any contract quantity reduction

option under this Section 7.6, Shipper's Service

Agreement must have a term of five (5) years or more

and a remaining term of two (2) years or less, unless

otherwise agreed.

(f) To be eligible for any contract quantity reduction

option, any costs that Shipper has agreed to

reimburse Panhandle for facilities constructed or

installed by Panhandle to provide service under

Shipper's Service Agreement(s) shall have been fully

reimbursed.

(g) Shipper must pay all its outstanding invoices before

Shipper is eligible for any contract quantity

reduction.

(h) Shipper's Service Agreement(s) shall have a zero

imbalance before Shipper is eligible for any contract

quantity reduction.

(i) If Shipper has Storage and related Transportation

contracts that are eligible for contract reduction

options under this Section 7.6, quantities under the

Storage and related firm Transportation services

shall be proportionally reduced so that Storage

service quantities, including Storage capacity and

deliverability quantities, and related Transportation

service quantities remain proportionately the same.

(j) The provisions of Section 7.2(b) of these General

Terms and Conditions shall not apply to the quantity

reduced pursuant to this Section 7.6.

7.7 Prior to the expiration of the term of an existing Service

Agreement and prior to Panhandle's posting the availability

of the capacity under Section 7.2(b)(ii), if applicable,

Panhandle and the existing Shipper may mutually agree to an

extension of the term of the Service Agreement with respect

to all or part of the underlying capacity (the exact length

of which is to be negotiated on a case-by-case basis in a not

unduly discriminatory manner).