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. 339 Original Sheet No. 339 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

27. MISCELLANEOUS

27.1 Service Agreements shall be governed by and interpreted in

accordance with the laws of the State of Texas, except for

any conflict of laws provisions thereof which would require

the application of the laws of another jurisdiction.

27.2 The Service Agreements create no rights in third parties.

27.3 Panhandle may waive any rights hereunder or any obligations

of Shipper on a basis which is not unduly discriminatory;

provided that no waiver shall operate or be construed as a

waiver of other or future rights or obligations, whether of

a like or different character.

27.4(a) Storage service provided by Panhandle under Rate Schedule

PS, and Rate Schedules WS, FS and IWS if designated by Shipper

as Market Area Storage related, shall be provided from

Storage capacity available to Panhandle from its Market

Area Storage Facilities, and no injections or withdrawals

for the account of any Shipper under such Rate Schedules

shall be identified with any particular Market Area Storage

Facility provided, however, when a Shipper designates

as the WS or PS Point an off-system Market Area Storage

Facility Panhandle has leased from a third party,

injections and withdrawals will be identified with

that particular facility. Storage service provided by

Panhandle under Rate Schedules IOS and IIOS and Rate

Schedules WS, FS and IWS if designated by Shipper as Field

Area Storage related shall be provided from Storage

capacity available to Panhandle from its Field Area

Storage Facilities, and no injections or withdrawals

for the account of any Shipper under such Rate

Schedules shall be identified with any particular Field

Area Storage Facility.

(b) If Shipper designates as a WS or PS Point an off-system

Market Area Storage Facility Panhandle has leased from

a third party, then, in addition to all the

requirements set forth in Rate Schedules WS, PS, FS or IWS,

as applicable, Shipper shall, not less than ten (10)

Business Days prior to the commencement of each Storage

injection and withdrawal cycle, enter into an operating