Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

Effective Date: 08/01/2004, Docket: RP04-383-000, Status: Effective

First Revised Sheet No. 303 First Revised Sheet No. 303 : Effective

Superseding: Original Sheet No. 303

GENERAL TERMS AND CONDITIONS

(Continued)

17.4 Shipper agrees to reimburse Panhandle for all filing or

other fees, in connection with any service subject to

these General Terms and Conditions, that Panhandle is

obligated to pay to the Commission or to any other

governmental authority having jurisdiction. The term

"fees" as used herein, shall mean any fee or charge now or

hereafter levied, assessed or made by any governmental

authority on the Gas itself or on the act, right or

privilege of producing, severing, gathering, transporting,

handling, selling, receiving or delivering Gas, however

such fees or charges are measured.

17.5 Refunds

Refunds due Shipper pursuant to the terms of this tariff

or orders of the Commission shall be paid by Electronic

Funds Transfer to a bank account established by Shipper

if:

(a) Shipper has transmitted payment for services to

Panhandle by Electronic Funds Transfer within the

twelve Month period preceding the date of the

refunds; and

(b) Shipper has designated in writing a bank account for

the receipt of Electronic Funds Transfers at least 30

Days prior to the date established for refunds; and

or exceeds $100,000.

Refunds not paid by Electronic Funds Transfer shall be

paid by check.

17.6 Order of Discounting

If and when Panhandle discounts the rates applicable for

service under any Service Agreement under Rate Schedules

included in Panhandle's FERC Gas Tariff, the components of

the currently applicable Maximum Rate shall be discounted

in the following order: the base rate charge, stranded

transportation cost surcharges and other transition cost

surcharges, followed by the GSR surcharges. Other non-

transition cost surcharges will be attributed in

accordance with the applicable section of the General

Terms and Conditions which provides for the surcharge as

agreed by Panhandle and its shippers in individual

proceedings.