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

Second Revised Sheet No. 296 Second Revised Sheet No. 296

Superseding: First Revised Sheet No. 296

GENERAL TERMS AND CONDITIONS

(Continued)

15.6 Rights and Obligations of Releasing Shipper

(a) Except as provided in Section 15.6(e), the Releasing

Shipper shall continue to be responsible to Panhandle

for all reservation charges and reservation

surcharges for Transportation or Storage service

provided pursuant to the Shipper's applicable Service

Agreement and all other charges and surcharges that

would be charged to the Releasing Shipper if the

Service Agreement had not been released. The

Releasing Shipper will not be responsible for

Commodity charges or volumetric surcharges which are

applicable under Panhandle's Tariff to Quantities of

Gas actually transported except as provided in Section

15.6(b) below for a Releasing Shipper with a

Negotiated Rate.

(b) A credit will be included on each of the Releasing

Shipper's monthly bills to reflect the reservation fee

invoiced to Replacement Shippers less any negotiated

marketing fee retained by Panhandle pursuant to Section

15.8 provided, however, that Panhandle and Releasing

Shipper may, in connection with a Negotiated Rate based on

a rate design other than straight fixed variable, agree

upon a payment obligation and crediting mechanism that

varies from or is in addition to the provisions of this

Section 15.6 in order to establish the basis of accounting

for revenues from a Replacement Shipper as a means of

preserving the economic bases of the Negotiated Rate. In

the event of a release with a volumetrically stated rate,

rate shall be no greater than the 100% load factor

equivalent of Panhandle's maximum reservation charge

currently applicable to the service released and shall be

credited to the Releasing Shipper's monthly bill for

reservation charges applicable to such service.

Notwithstanding the above, no 100% load factor equivalent

limitation shall apply to a capacity release for a period

of one year or less if the release is to take effect on

or before one year from the date on which Panhandle is

notified of the release.

If a Replacement Shipper fails to pay all or any part

of the reservation fee so credited within thirty (30)

days of its due date, then such unpaid amount will be

charged to the Releasing Shipper's next monthly bill

and will be due and payable by the Releasing Shipper in

accordance with Section 17 of these General Terms and

Conditions.

The payment of the reservation charge by the

Replacement Shipper on a one-part volumetric basis

shall not relieve Panhandle, the Releasing Shipper or

the Replacement Shipper from their obligations to

conform to all of the terms and conditions of this

Section 15.