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. 239 Original Sheet No. 239 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(6) Within each service category provided in (1)

through (4) above, a Shipper may, through

electronic data interchange, provide a ranking

of individual Points of Receipt within a

Shipper's Service Agreement in the event the

entirety of the Shipper nomination cannot be

scheduled.

(b) Scheduling of Deliveries

(1) Firm service to primary Point(s) of Delivery.

(2) Firm service to secondary Point(s) of Delivery

within the Primary Path beginning with service

charged the applicable Maximum Rate followed by

firm service to secondary Point(s) of Delivery

within the Primary Path charged a rate less than

the applicable Maximum Rate in sequence starting

with the rate most proximate to the Maximum Rate

(expressed as a percentage of the Maximum Rate).

Within each category, Quantities of Gas will be

scheduled pro-rata.

(3) Firm Service to secondary Point(s) of Delivery

outside the Primary Path beginning with service

charged the applicable Maximum Rate followed by

firm service to secondary Point(s) of Delivery

outside the Primary Path charged a rate less

than the applicable Maximum Rate in sequence

starting with the rate most proximate to the

Maximum Rate (expressed as a percentage of the

Maximum Rate). Within each category, Quantities

of Gas will be scheduled pro-rata.

(4) Interruptible service to Point(s) of Delivery

beginning with interruptible service charged the

applicable Maximum Rate, followed by interruptible

service charged a rate less than the applicable

Maximum Rate in sequence starting with the rate

most proximate to the Maximum Rate (expressed as a

percentage of the Maximum Rate). Interruptible

service provided under Rate Schedule EIT shall be

scheduled before interruptible service provided

under Rate Schedule IT charged a rate equally

proximate to the maximum rate (expressed as a

percentage of the maximum rate). Authorized

Quantities in excess of the MDCQ shall be

scheduled as interruptible. Within each category

of interruptible service, service shall be

scheduled in sequence starting with the service

with the earliest request date.