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. 593 Original Sheet No. 593 : Effective

RATE SCHEDULE IWS (Continued)

INTERRUPTIBLE WINTER STORAGE SERVICE

FORM OF STORAGE AGREEMENT

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 IWS filed with the

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hereafter be modified, supplemented, superseded, or replaced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

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 IWS 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) in a

specified relationship to the Quantities actually stored (i.e., that

the rates shall be adjusted in a specified relationship to the actual

Stored Quantity); or (e) 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.); 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 accepts revised tariff sheets. However,

nothing contained herein shall be construed to alter a refund

obligation under applicable law for any period during which rates

which had been charged under a discount agreement exceeded rates

which ultimately are found to be just and reasonable. Any

discount(s) shall be effective only on a prospective basis and as

specified in the written agreement between Panhandle and Shipper.