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. 254 First Revised Sheet No. 254

Superseding: Original Sheet No. 254

GENERAL TERMS AND CONDITIONS

(Continued)

(ii) the sum of the Quantities of Gas nominated

by the Releasing Shipper to any secondary

firm Point(s) of Delivery, together with the

sum of the Quantities of Gas nominated to

primary firm Point(s) of Delivery, shall not

exceed the Maximum Daily Contract Quantity

not released in the Releasing Shipper's

Service Agreement; provided, however, that

where a Releasing Shipper releases a segment

or segments of its service rights, the

Releasing Shipper may nominate for

Transportation on any Day, up to the Maximum

Daily Contract Quantity not released in its

Service Agreement applicable to any segment

wherein it has retained service rights.

(iii) A Releasing Shipper and/or a Replacement Shipper

may segment its Primary Path to forwardhaul and

backhaul Quantities of Gas to the same Point of

Delivery. In such a segmented transaction, the

Shipper may exceed its Maximum Daily Contract

Quantity at that Point of Delivery and the

Shipper may nominate Quantities of Gas in each

segment up to the Shipper's Maximum Daily

Contract Quantity assigned to such segment;

provided, however, the Quantities nominated to

flow in the opposite direction of the flow in

the Primary Path shall be considered to be

outside the Shipper's Primary Path for

scheduling purposes.

(iv) If the Releasing Shipper and the Replacement

Shipper nominate Quantities of Gas in segments

that overlap, the Quantities shall be scheduled

in accordance with Section 8.8 of these General

Terms and Conditions. If the Quantities have

equal priority and the sum of the Quantities

cannot be scheduled, the Quantities shall be

scheduled pro-rata unless the Releasing Shipper

specifies otherwise in its release notice.

(c) If the Shipper's Service Agreement has been released

entirely to a Replacement Shipper pursuant to Section

15 of these General Terms and Conditions, the

Replacement Shipper may nominate Quantities at

Point(s) of Delivery to the same extent the Releasing

Shipper could have if the Service Agreement had not

been released.