Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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

First Revised Sheet No. 249 First Revised Sheet No. 249 : Effective

Superseding: Original Sheet No. 249

GENERAL TERMS AND CONDITIONS

(Continued)

Service Agreement and may nominate from the

primary firm Point(s) of Receipt at any time, subject

to the provisions of Sections 8 and 9 of these

General Terms and Conditions.

10.3(a) The reservation components under Rate Schedules FT,

EFT, LFT and HFT shall be computed using the

Quantities of Gas assigned to the primary firm

Point(s) of Receipt in the Service Agreement except

as provided in Sections 10.3(b) or 10.3(c). Subject

to the provisions of Section 10.5 hereof, the

reservation components shall be pro-rated to adjust

for changes during the Month for the Point(s) of

Receipt designated in the Service Agreement or the

Quantities assigned thereto.

(b) The Quantities of Gas assigned to a secondary firm

Point(s) of Receipt shall serve to increase the

reservation components to reflect the additional rate

zones or mileage segments associated with such

Quantities if: (1) the Quantity nominated and

scheduled to a secondary firm Point(s) of Receipt

located on Panhandle's Gathering facilities exceeds

the Maximum Daily Contract Quantity assigned to all

primary firm Points of Receipt on such Gathering

facilities; or (2) the Quantity nominated and

scheduled to a secondary firm Point(s) of Receipt

located in the Field Zone exceeds the Maximum Daily

Contract Quantity assigned to all primary firm Points

of Receipt located in the Field Zone and upstream

thereof; or (3) the Quantity nominated and scheduled

to a secondary firm Point(s) of Receipt in the Market

Zone exceeds the Maximum Daily Contract Quantity

assigned to all primary firm Points of Receipt

located in the same mileage segment of the Market

Zone and upstream thereof.

(c) A Shipper with a primary firm Point of Receipt

located in the Field Zone may assign Quantities of

Gas to be transported under a firm Rate Schedule from

a secondary firm Point(s) of Receipt located on

Panhandle's Gathering facilities up to the Maximum

Daily Contract Quantity assigned to the Field Zone

without affecting the computation of the Gathering

reservation component, notwithstanding the provisions

of Section 10.3(b).