Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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

First Revised Sheet No. 288 First Revised Sheet No. 288

Superseding: Original Sheet No. 288

GENERAL TERMS AND CONDITIONS

(Continued)

15. PROCEDURES FOR CAPACITY RELEASE

15.1 Service Rights That May Be Released

(a) The Service Agreements of a Releasing Shipper with

Service Agreements under Rate Schedule FT, EFT,

IOS, WS, PS, FS, LFT or HFT may be released, in

whole or in part, to a Replacement Shipper for any

time period up to the remaining term of the Service

Agreement.

(b) A Releasing Shipper is a Shipper that has executed

a Release Notice in accordance with Section 15.2.

(c) A Replacement Shipper is a party that (1) meets the

eligibility criteria for Shippers set forth in

Section 6, including the credit standards set forth

in Section 6.2, except that Panhandle shall not

require the Replacement Shipper to make the

prepayment required by Section 6.9, (2) accepts

assignment of the Service Agreement of a Releasing

Shipper pursuant to this Section 15, and, (3)

executes a Capacity Release Service Agreement as

prescribed by this Tariff. Panhandle will issue

and execute an Addendum to the Capacity Release

Service Agreement when the Releasing Shipper's

Service Agreement is awarded to the Replacement

Shipper.

(d) A Replacement Shipper may release, in whole or in

part, the Addendum to its Capacity Release Service

Agreement as a Releasing Shipper pursuant to this

Section 15.

15.2 Initiation of the Release of Service Rights

(a) A Releasing Shipper may initiate the release of

its Service Agreement by electronically submitting

a Release Notice in the form prescribed by this

Tariff. Such Release Notice shall be posted on the

Messenger® system. Panhandle shall accept the upload

of prearranged capacity release transactions. A

Releasing Shipper may withdraw its Release Notice

at any time prior to the close of the posting

period where unanticipated circumstances justify

and no minimum bid has been made.

(b) In the Release Notice the Releasing Shipper must

specify the term, quantity and Minimum Rate

expressed in dollars and cents or percent of

Maximum Rate the Releasing Shipper is willing to

accept and whether the release is subject to

recall and the applicable recall conditions as well