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. 268 Original Sheet No. 268 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(g) Hourly Delivery Notification

If a Shipper under Rate Schedule EFT, EIT, SCT, GDS

or LFT, is duly notified by Panhandle to limit hourly

deliveries to one-sixteenth of the Quantity scheduled

for delivery on that Day and continues to receive

more Gas at the Point(s) of Delivery than the amount

allowed, Shipper shall pay $10 per Dt. or two times

the Mid-Continent Spot Price calculated in accordance

with Section 12.11(c), whichever is greater, for the

excess deliveries in addition to all other applicable

charges.

(h) Daily Scheduling Charge

(1) If the sum of actual deliveries at any Point of

Delivery under Transportation Agreements varies

from the Sum of Quantities of Gas scheduled for

delivery at such Point of Delivery by 10% or 100

Dt., whichever is greater (hereinafter called

the tolerance level) plus the available MDVQ if

the delivery point operator is a DVS Party, a

daily Scheduling Charge shall be assessed;

provided that, no Scheduling Charge shall be

assessed on an interruptible Transportation

Agreement for the Day on which such Shipper's

scheduled Quantity has been reduced as a result

of a nomination under a Transportation Agreement

for firm service during the Evening Nomination

Cycle or the Intra-day 1 Nomination Cycle in

Section 8.2(b) herein. The charge shall be

applied to each Transportation Agreement with

respect to which actual deliveries, as allocated

in accordance with Section 12.10, above, vary

from the scheduled Quantity in excess of the

tolerance level; provided that, if the

Transportation Agreement is a designated

Transportation Agreement under a TBS Agreement,

the tolerance level shall be expanded by the

MDIQ, MDWQ, and available Stored Volume

applicable to the designated Transportation

Agreement under the TBS Agreement and if the

Transportation Agreement is an underlying

Transportation Agreement under Rate Schedule

DVS, the tolerance level shall be increased by

the MDVQ. For service under Rate Schedule FT

and IT, the Scheduling Charge shall be equal to

the sum of the IT Commodity rates per Dt.

applicable to the Transmission Access Charge and

the Transmission Mileage Charge for 401-500

miles set forth on effective Tariff Sheet No. 7;