Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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

Second Revised Sheet No. 297 Second Revised Sheet No. 297

Superseding: First Revised Sheet No. 297

GENERAL TERMS AND CONDITIONS

(Continued)

service rights under Rate Schedule FT, EFT, LFT or

HFT, the MAIQ under the Transportation Agreement will

be reduced proportionately by the amount of MDCQ

released. Any imbalance in excess of this reduced

MAIQ must be reduced to the new tolerance level in

the month following the completion of the release to

avoid balancing charges pursuant to Section 12.11.

(d) When a Releasing Shipper partially releases its service

rights under a Service Agreement by releasing service

rights between specific Point(s) of Receipt and

Delivery or by releasing only a portion of the Maximum

Daily Contract Quantity, the Releasing Shipper's

Service Agreement shall be deemed to be modified in

accordance with the release and the Releasing Shipper

may not utilize the service rights released during the

term of the release.

(e) If the Releasing Shipper's Service Agreement is

released permanently for the remaining term of the

agreement, subject to Panhandle's agreement, the

Releasing Shipper shall have no further responsibility

or obligations under the Service Agreement. Such

permanent release shall provide the same economic value

as the original underlying agreement, or such

difference shall be funded by the Releasing Shipper,

unless Panhandle agrees otherwise.

(f) Releasing Shippers may, to the extent permitted as a

condition of the capacity release, recall released

capacity. For the recall notification provided to

Panhandle, Panhandle's Tariff should specify whether the

quantity should be expressed in terms of a) total

released capacity entitlements or b) adjusted total

released capacity entitlements based upon the elapsed

prorata capacity. The capacity entitlements resulting

from the use of either a) or b) should be the same. The

recall notification to Panhandle shall specify the

Quantity in terms of total released capacity

entitlements.