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. 265 Original Sheet No. 265 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(2) Contract Imbalance Trading

(i) Shipper may authorize contract imbalances

under Shipper's Transportation Service

Agreements within the same Operational Impact

Area, as defined in Section 12.11(d)(3), to

be posted for trading after the Shipper has

minimized excess receipts and deliveries

pursuant to Section 12.11(d)(1) above.

(ii) Authorizations to post imbalances that are

received by Panhandle by 11:45 a.m. shall be

effective by 8:00 a.m. the next Business Day

(Central Clock Time). Imbalances authorized

for posting shall be posted on or before the

ninth (9th) Business Day of the Month.

(iii) Panhandle shall provide the ability to post

and trade imbalances until at least the close

of the seventeenth (17th) Business Day of the

Month.

(iv) Shippers may trade contract imbalances with

other Shippers having Transportation

Agreements within the same Operational Impact

Area, as defined in Section 12.11(d)(3)

below. Contract imbalances must be traded

with contract imbalances in the opposite

direction and must move Shipper's imbalance

closer to zero. When trading imbalances, a

Quantity must be specified.

(v) Panhandle shall enable the imbalance trading

process by:

. Receiving the request for imbalance trade;

. Receiving the imbalance trade confirmation;

. Sending the imbalance trade notification;

and

. Reflecting the trade prior to or on the

next monthly Shipper imbalance or cashout.

(vi) Imbalance trades can only be withdrawn by the

initiating Shipper and only prior to the

confirming Shipper's confirmation of the

trade. Imbalance trades are considered final

when confirmed by the confirming Shipper and

effectuated by Panhandle. Imbalance trades