Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

Effective Date: 06/30/2004, Docket: RP04-321-000, Status: Effective

Original Sheet No. 321 Original Sheet No. 321 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(g) Carrying Charges

Each month Panhandle shall credit or debit its

Unrecovered Dakota Gasification Transition Cost

Account, as appropriate, with carrying charges on the

prior month's ending balance. Carrying charges shall

be calculated in a manner consistent with the

procedures set forth in Section 154.501(d) of the

Commission's Regulations.

(h) Billing and Payment

In addition to its other applicable charges and

surcharges for Market Area Storage service under Rate

Schedules WS, PS, FS and IWS, Panhandle's invoices to

Shippers under Rate Schedules WS, PS, FS and IWS shall

include the amount for the Dakota Gasification

Transition Cost Surcharge shown on Tariff Sheet Nos.

11, 12, 13 and 14. The Dakota Gasification Transition

Cost Surcharge shall be billed on the basis of the

Maximum Daily Withdrawal Quantity for Rate Schedules

WS, PS and FS and the volumes for the Monthly

Inventory Charge for Rate Schedule IWS. Shipper's

obligation to pay for services provided under such

Rate Schedules shall include the obligation to pay the

Dakota Gasification Transition Cost Surcharge. The

provisions of Section 17 hereof also shall apply to

Shipper's payments of the Dakota Gasification

Transition Cost Surcharge.