Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 280 Original Sheet No. 280 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

OFO, and any other information which may be

required in the circumstances.

(iv) Within a reasonable period of time following

the end of the OFO, Panhandle will post on the

Messenger System and the Web Site a report

detailing the conditions that required the

issuance and termination of the OFO.

(e) Remedial Action to Be Taken

The OFO shall require the Shipper(s) subject to the

OFO to take such action(s) or refrain from such

action(s) as necessary to alleviate the conditions

set forth in Sections 12.17(a) and 12.17(b). These

actions include, but are not limited to, the

elimination of Unauthorized Overruns and the

reduction of scheduling variances. If the OFO

requires the elimination of Unauthorized Overruns and

the reduction of scheduling variances, the OFO shall

reduce the daily tolerance level for Unauthorized

Overruns to zero and shall reduce the tolerance level

for scheduling variances from 10% to 5% and require

Shipper(s) to maintain scheduling variances to the

tolerance level stated in the notice. For Shipper(s)

under Rate Schedule SCT, the tolerance level shall be

reduced from 10% to 5%, or 500 Dt., whichever is

greater.

(f) Penalties for Noncompliance With the OFO

Except as provided in Section 12.17(d)(i), if a

Shipper does not comply with the OFO, then:

(i) for an OFO requiring Shipper(s) to reduce

scheduling variances, Shipper shall pay for

variances in excess of the reduced tolerance

level of 5% or 500 Dt. for Shippers under

Rate Schedule SCT and 5% for Shipper(s) under

other Rate Schedules, the greater of (a) two

(2) times the highest daily price published

in Gas Daily, Daily Price Survey, Citygates -

Chicago LDCs or Citygates - Mich.-Mich Con,

whichever is greater, for the day (Saturday

and Sunday shall be the preceding Friday

price) that Daily Scheduling Charges are

incurred, or (b) the following:

Variance Rate

5% - 10% $ 25.00 per Dt.

>10% - 15% $ 50.00 per Dt.

>15% - 50% $100.00 per Dt.

>50% $200.00 per Dt.