Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

Effective Date: 09/01/2004, Docket: RP04-426-000, Status: Effective

First Revised Sheet No. 578 First Revised Sheet No. 578 : Effective

Superseding: Original Sheet No. 578

RATE SCHEDULE IIOS (Continued)

INTERRUPTIBLE IN/OUT STORAGE SERVICE

FORM OF STORAGE AGREEMENT

1.2 Shipper shall have the right to nominate for delivery to it

at the IOS Point, as described in Rate Schedule IOS, on an

interruptible basis, any portion of its Stored Volume, up to the

Maximum Daily Withdrawal Quantity, on any Day during the term hereof.

In no event shall volumes delivered hereunder to Shipper ever exceed

Shipper's Stored Volume as defined in Section 1.1. Panhandle shall

not be required to deliver quantities of Gas on any Day for which

there is insufficient available capacity under Transportation

Agreements to which Shipper has a right to deliver Gas at the IOS

Point.

1.3 Transporter shall retain, as Fuel Reimbursement, the

percentages of Gas injected and withdrawn hereunder, as set forth on

effective Tariff Sheet No. 10.

ARTICLE 2

BILLING AND PAYMENT

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 IIOS filed with the

Commission, as such rates and charges and Rate Schedule IIOS 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hereafter be modified, supplemented, superseded, or replaced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 IIOS

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.