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. 255 First Revised Sheet No. 255 : Effective

Superseding: Original Sheet No. 255

GENERAL TERMS AND CONDITIONS

(Continued)

(d) If a Shipper nominates Quantities of Gas for

Transportation to a secondary firm Point(s) of

Delivery, Shipper shall retain its priority at the

primary firm Point(s) of Delivery designated in the

Transportation Agreement and may nominate from the

primary firm Point(s) of Delivery, subject to the

provisions of Sections 8 and 9 of these General Terms

and Conditions.

11.6(a) The reservation components applicable to Shippers

under Rate Schedules FT, EFT, LFT and HFT shall be computed

using the Quantities of Gas assigned to the primary firm

Point(s) of Delivery in the Service Agreement except as

provided in Section 11.6(b). Subject to the provisions of

Section 11.9 hereof, the reservation components shall be

pro-rated to adjust for changes during the Month in the

Point(s) of Delivery designated in the Service Agreement or

the Quantities assigned thereto.

(b) Quantities of Gas assigned to a secondary firm Point(s)

of Delivery 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 Delivery located on Panhandle's Gathering

Facilities exceeds the Maximum Daily Contract Quantity

assigned to all primary firm Points of Delivery on

such Gathering facilities and downstream thereof; or (2) the

Quantity nominated and scheduled to a secondary firm

Point(s) of Delivery located in the Field Zone exceeds the

Maximum Daily Contract Quantity assigned to all primary firm

Points of Delivery located in the Field Zone and downstream

thereof; or (3) the Quantity nominated and scheduled

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

exceeds the Maximum Daily Contract Quantity assigned to all

primary firm Points of Delivery located in the same mileage

segment of the Market Zone and downstream thereof.

11.7 A secondary firm Point of Delivery is not eligible

for service under Rate Schedule GDS.

11.8 Shippers under Rate Schedule FT, EFT, IT, EIT, LFT or GPS

which designate and utilize a Pool Point as a Point

of Delivery shall be subject to the terms and

conditions of Section 14 herein.