Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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

Original Sheet No. 325 Original Sheet No. 325 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(f) Miscellaneous Stranded Cost Exit Fee

If at any time prior to the conclusion of

recoveries of costs pursuant to this Section

18.7, a Shipper under a firm Service Agreement

affected by this Section 18.7 requests a

modification to the Service Agreement to reduce

the MDCQ or requests a termination of the Service

Agreement and if Panhandle agrees to such

reduction or termination, then such Shipper shall

become obligated to Panhandle for payment of the

Miscellaneous Stranded Cost Exit Fee, as mutually

agreed to by Panhandle and such Shipper. Within

thirty (30) days after any such termination,

Panhandle shall send an invoice for amounts due

hereunder from a Shipper affected by this Section

18.7(f) and payment shall be due within ten (10)

days of the issuance of such invoices. Panhandle

shall include amounts due hereunder from a

Shipper with reduced MDCQ with the Shipper's

first invoice for continuing service after the

effectiveness of such reduction. Payment of a

Miscellaneous Stranded Cost Exit Fee by a Shipper

reducing its MDCQ shall not serve to extinguish

the obligation of such Shipper for Miscellaneous

Stranded Cost Reservation Surcharges applicable

to the remainder of its MDCQ. A firm Shipper

which exercises a contractual right to reduce or

terminate its contract will not be subject to a

Miscellaneous Stranded Cost Exit Fee to the

extent of such reduction or termination.

(g) Reconciliation Provisions

(1) Within ninety (90) days of the conclusion of

the Section 18.7 Recovery Period, Panhandle

shall reconcile its Miscellaneous Stranded

Costs with the actual amounts of

Miscellaneous Stranded Costs recovered during

such period. The actual amounts of

Miscellaneous Stranded Costs recovered

through Miscellaneous Stranded Cost

Reservation Surcharges under Rate Schedule

FT, EFT, SCT, LFT and HFT shall be determined

separately from the actual amounts of

Miscellaneous Stranded Costs recovered

through Miscellaneous Stranded Cost

Volumetric Surcharges under Rate Schedules IT

and EIT.