Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

Effective Date: 09/01/2004, Docket: RP04-426-000, Status: Effective

First Revised Sheet No. 236 First Revised Sheet No. 236 : Effective

Superseding: Original Sheet No. 236

GENERAL TERMS AND CONDITIONS

(Continued)

requirements of Section 8.2(a) or Section 8.2(b),

upon request, if operating conditions permit such

waiver. Shipper shall notify Panhandle

immediately of any unexpected changes in volumes

tendered for receipt or delivery, whether or not

such notice conforms to the times set out herein.

8.3 Shippers shall cause the Operator of each Point of Receipt

and each Point of Delivery designated in any nomination

under Section 8.2 to confirm all such nominations in

writing prior to implementation by Panhandle.

8.4 This section is reserved for future use.

8.5(a) Shipper shall cause Operators at their Points of Receipt

and Points of Delivery to provide in writing to Panhandle

a predetermined daily allocation methodology for measured

Quantities of Gas (based on scheduled nominations) before

the start of the Day. Parties may agree upon one of the

following allocation methodologies: ranked, pro rata,

percentage, swing and operator provided value. In the

event the parties cannot agree on an allocation

methodology, pro rata based on confirmed nominations will

be used as the default method. The party responsible for

custody transfer (the party performing the measurement

function) must provide the allocation. Panhandle will

accept such allocation if operationally or

administratively feasible.