Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

Effective Date: 05/17/2009, Docket: RP09-517-000, Status: Effective

First Revised Sheet No. 284 First Revised Sheet No. 284

Superseding: Original Sheet No. 284

GENERAL TERMS AND CONDITIONS

(Continued)

13. POLICY FOR CONSTRUCTION OF NEW RECEIPT OR DELIVERY FACILITIES

All requests for new interconnects must be made in writing. The

party requesting the new interconnect shall reimburse Panhandle or

cause Panhandle to be reimbursed for any and all reasonable costs and

expenses incurred in constructing, establishing or modifying the

facilities required to establish a new interconnection on existing

facilities for receipt or delivery of Gas hereunder. Such

reimbursement shall be received by Panhandle prior to commencement of

service, unless otherwise agreed. In the alternative, the party

requesting the interconnect may perform the construction at its own

cost in compliance with Panhandle's technical requirements. In this

regard, all new receipt and delivery meters shall require EGM which

shall be owned by Panhandle and all new delivery meters shall require a

Flow Control Device with pressure override features that can be

remotely operated by Panhandle. Panhandle also must be the custody

transfer party at the proposed facility.

In addition to the above requirements, Panhandle will agree to

construct a new interconnect or modify an existing interconnect on

the following terms:

(1) The construction of the new interconnect will not create

any significant operational problems for Panhandle;

(2) The proposed interconnect will not adversely affect the

rendition of existing service or adversely alter the

operation of the pipeline system;

(3) The new interconnect must be at a mutually agreeable

location on the Panhandle system; provided, however, that

Panhandle may not deny a customer's request for specific

placement of the interconnect without adequate

operational, environmental, or legal justification;

(4) In order to properly and prudently design and size the new

interconnect, Panhandle must be provided with reasonable

and reliable data concerning the interconnecting

facilities, including delivery pressures, and anticipated

hourly, daily, monthly and annual volume levels of the

service that supports the new interconnect and such other

data as is reasonably required to construct the

interconnect facility;