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. 278 Original Sheet No. 278 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(i) operating pressures on the affected portion

of the system are significantly less than or

greater than normal system operating

pressures despite Panhandle's efforts to

maintain normal pressures and a further

decline or increase in operating pressures

would impair Panhandle's ability to receive

or deliver scheduled Quantities of Gas;

(ii) a Shipper fails to maintain receipts or

deliveries as required in this tariff;

(iii) unscheduled pipeline maintenance and repairs

affect capacity;

(iv) wells or pipelines or other essential

equipment freeze to the extent that such

freezing damages or destroys or otherwise

impairs Panhandle's essential facilities or

ability to monitor and control essential

facilities or results in the loss of supplies

of natural gas from other pipelines,

Panhandle's storage facilities or producers

of Gas;

(v) a loss of Gas supply from producers, storage

providers or other suppliers reduces pressure

or supplies available for delivery;

(vi) Federal or state rules, regulations, orders,

such as safety inspection orders and

environmental safety orders, require

Panhandle to reduce operating pressures in,

or remove from service, a portion of

Panhandle's system facilities;

(vii) a mechanical or physical failure affects

Panhandle's ability to deliver or receive gas

or operate storage, including, but not

limited to, pipeline failure, compressor

failure, regulator failure, or other similar

mechanical or physical failure;

(viii) a partial or total failure of electronic and

communications systems impairs Panhandle's

ability to monitor or control Panhandle's

system;

(ix) external operations, including but not limited

to highway construction, require Panhandle to

reduce operating pressures in, or remove from

service, a portion of Panhandle's system

facilities; or

(x) a Shipper's failure to comply with the

provisions of this Tariff that adversely

affects the operations of Panhandle's