Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 517 Original Sheet No. 517 : Effective

RATE SCHEDULE EFT (Continued)

ENHANCED FIRM TRANSPORTATION SERVICE

FORM OF TRANSPORTATION AGREEMENT

ARTICLE 3 - RATES AND CHARGES

For the services provided or contracted for hereunder, Shipper

agrees to pay Panhandle the then-effective, applicable rates and

charges under Panhandle's Rate Schedule EFT filed with the

Commission, as such rates and charges and Rate Schedule EFT may

hereafter be modified, supplemented, superseded, or replaced

generally or as to the service hereunder. Panhandle reserves the

right from time to time to unilaterally file and to make effective

any such changes in the terms or rate levels under Rate Schedule EFT

and the applicability thereof, the General Terms and Conditions or

any other provisions of Panhandle's Tariff, subject to the applicable

provisions of the Natural Gas Act and the Commission's Regulations

thereunder.

From time to time Panhandle and Shipper may agree in writing,

on a level of discount of the otherwise applicable rates and charges

hereunder, pursuant to the effective applicable provisions of Rate

Schedule EFT and subject to the Regulations and Orders of the

Commission. For example, Panhandle and Shipper may agree that a

specified discounted rate shall apply: (a) only to certain

Quantities under this Agreement; (b) only if specified Quantity

levels are actually achieved or only with respect to Quantities below

a specified level; (c) only during specified time periods; (d) only

to specified Points of Receipt, Points of Delivery, mainline

segments, transportation paths or defined geographical areas; (e)

only to production reserves committed by the Shipper; (f) in a

specified relationship to the Quantities actually transported (i.e.,

that the rates shall be adjusted in a specified relationship to

Quantities actually transported); or (g) based on published index

prices for specific receipt or delivery points or other agreed upon

pricing reference points for price determination (Such discounted

rate may be based on the published index price point differential or

arrived at by formula. Any service agreement containing an index

based discount will identify what rate component is discounted. To

the extent the firm reservation charge is discounted, the index price

differential rate formula shall be calculated to state a rate per

unit of MDCQ.); provided, however, that any such discounted rate set

forth above shall be between the Maximum Rate and Minimum Rate

applicable to the service provided under this Agreement. In addition,

the discount agreement may include a provision that if one rate

component which was at or below the applicable Maximum Rate at the

time the discount agreement was executed subsequently exceeds the

applicable Maximum Rate due to a change in Panhandle's Maximum Rates

so that such rate component must be adjusted downward to equal the

new applicable Maximum Rate, then other rate components may be

adjusted upward to achieve the agreed overall rate, so long as none

of the resulting rate components exceed the Maximum Rate applicable

to that rate component. Such changes to rate components shall be

applied prospectively, commencing with the date a Commission order