Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

Effective Date: 06/30/2004, Docket: RP04-321-000, Status: Effective

Original Sheet No. 259 Original Sheet No. 259 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

to Panhandle and shall make such information available to

all parties to the transaction. Panhandle shall make

Operating Data available in the Messenger system, within

one Business Day following the conclusion of the production

Day for meters equipped with EGM or the availability of

chart measurement for meters not so equipped.

12.10 Allocation of Deliveries

Quantities of Gas delivered at any Point of Delivery on any

Day shall be allocated first to nominated and

scheduled WS, IWS, PS and FS Storage. After all nominated

Storage has been accounted for, all Transportation

Agreements shall be allocated pursuant to the allocation

methodology as described in Section 8.5(a).

12.11 Balancing Charges

If Shipper does not maintain a concurrent balance between

Quantities of Gas received, adjusted for Fuel

Reimbursement, and Quantities of Gas delivered, the

following charges shall apply to imbalances in such

Quantities.

(a) Firm Service Monthly Contract Balancing

For the purposes of this Section 12.11(a), Maximum

Accumulated Imbalance Quantity (MAIQ) shall be

established as the product of 1.5 times the Maximum

Daily Contract Quantity (MDCQ) under a firm

Transportation Agreement or 1,000 Dt., whichever is

greater.

Each Month, Panhandle shall determine for each

Shipper receiving service under Rate Schedule FT,

EFT, SCT, GDS, LFT or HFT the Shipper's imbalance

based on the Quantities of Gas received and delivered

in the prior Month after minimizing the imbalances in

accordance with Section 12.11(d) of these General

Terms and Conditions. The resulting excess receipts

and deliveries shall be handled as follows: