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. 277 Original Sheet No. 277 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

Delivery. For purposes of aggregation under this

Section 12.16(b), Shipper shall have scheduled

quantities under the firm Transportation Agreements

to be aggregated to no other Point of Delivery.

(c) Panhandle will use the quality specifications,

including Btu measurements, shown at the meter with

no retroactive adjustment applied in determining the

Unauthorized Overrun Penalty provided for in this

Section 12.16.

(d) If a Shipper takes Quantities of Gas in excess of

MDCQ which cause a Shipper to incur an Unauthorized

Overrun Penalty under this Section 12.16, such

Quantities of Gas will not be considered in any

calculation of an otherwise applicable Daily

Scheduling Charge pursuant to Section 12.11(h)(1) of

the General Terms and Conditions. However, if

Panhandle has issued an OFO, the penalty provided for

in Section 12.17(f)(ii) below shall apply in lieu of

the Unauthorized Overrun Penalty in this Section

12.16.

12.17 Operational Flow Orders

(a) Conditions for the Issuance of an Operational Flow

Order

Panhandle will have the right to issue an Operational

Flow Order (OFO) when, in Panhandle's reasonable

judgment, such OFO is required to alleviate

conditions which threaten or could threaten system

integrity, safety or reliability of service or to

ensure Shipper(s) compliance with the provisions

contained in this Tariff. An OFO may be issued to a

particular Shipper(s) creating the need for the OFO

or to Shippers on all or part of the system, when in

the absence of such Shipper(s) action(s), an OFO

would not be required. When an OFO is issued,

Panhandle will endeavor to minimize the Shippers and

Quantities affected. In this regard, Panhandle will

not require Shipper(s) under Rate Schedules EFT and

SCT in the affected segment to restrict takes at a

Point(s) of Delivery during any hour to one-sixteenth

of the nominated and scheduled Quantity to the

Point(s) for the Day unless deliveries to other

Shipper(s) in the affected segment have been ordered

to be within the tolerance levels set forth in this

Section 12.17.

(b) Circumstances Under Which an OFO May Be Issued

Panhandle may issue an OFO in any circumstance which

would, in Panhandle's reasonable judgment, impair

Panhandle's ability to receive or deliver Quantities

of Gas in accordance with its service obligations

including, but not limited to, when: