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. 328 Original Sheet No. 328 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

20. FORCE MAJEURE

In the event, to the extent, and for so long as either Panhandle

or Shipper is unable, by reason of force majeure, to carry out its

obligations hereunder, in whole or in part, the obligations of either

of Panhandle or Shipper, other than to make payment of reservation

fees or capacity charges which shall become due, shall be suspended,

in whole or in part, and neither Panhandle nor Shipper shall be

liable in damages to the other as a result of Force Majeure. "Force

Majeure," as employed herein, shall mean any cause, whether of the

kind herein enumerated or otherwise, not within the control of either

Panhandle or Shipper claiming suspension, and which by the exercise

of due diligence, either Panhandle or Shipper has been unable to

prevent or overcome, including without limitation acts of God, the

government including the issuance of rules or orders which serve to

frustrate or prevent the performance of Panhandle, or a public enemy;

strikes, lockouts, or other industrial disturbances; wars, blockades,

or civil disturbances of any kind; epidemics, landslides, hurricanes,

washouts, tornadoes, storms, earthquakes, lightning, fires,

explosions, arrests, and restraints of governments or people;

freezing of, breakage or accident to, or the necessity for making

repairs or alterations to wells, machinery or lines of pipe; partial

or entire failure of wells; and the inability of either Panhandle or

Shipper to acquire, or the delays on the part of either of Panhandle

or Shipper in acquiring, at reasonable cost and after the exercise of

reasonable diligence: (a) any servitudes, rights of way grants,

permits, or licenses; (b) any materials or supplies for the

construction or maintenance of facilities; or (c) any permits or

permissions from any governmental agency; if such are required to

enable either of Panhandle or Shipper to fulfill its obligations

hereunder. Additionally, Panhandle shall be excused in whole or in

part, from its performance for inability to obtain Transportation

from or through third party pipelines. Either Panhandle or Shipper

claiming force majeure shall give to the other(s) notice and full

particulars of such force majeure by telephone or facsimile as soon

as reasonably possible after the occurrence of the case relied on,

and shall remedy such inability to perform with all reasonable

dispatch; provided, however, that such requirement or remedy shall

not require the settlement of strikes or lockouts by accession to the

demands of those opposing either of Panhandle or Shipper when such

course is inadvisable in the discretion of either of Panhandle or

Shipper.