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. 600 Original Sheet No. 600 : Effective

RATE SCHEDULE PS (Continued)

PEAKING STORAGE SERVICE

FORM OF STORAGE AGREEMENT

1.2 In each year of the term of this Storage Agreement,

Shipper may elect to retain a portion of its Stored Volume as

carry-over volume (Carry-over Volume) to be left in storage during

the succeeding Summer Period and delivered in the succeeding Winter

Period. Shipper may so retain up to 20% of its Maximum Stored

Quantity for such carry-over without penalty. In the event the

retained Carry-over Volume exceeds 20% of its Maximum Stored

Quantity, Shipper shall be subject to an additional percentage

retention of Gas as set forth in Section 1.3. The sum of the

Carry-over Volume and the volumes delivered by Shipper for storage

during any Summer Period shall not exceed Shipper's Maximum Stored

Quantity set forth in Section 1.1 of this Agreement.

1.3 Shipper agrees to furnish, in addition to volumes

delivered for injection into storage, a volume of Gas equal to the

percentage set out in effective Tariff Sheet No. 12 of such volumes

delivered into storage in each year of the term hereof to be retained

by Panhandle for use as compressor fuel, plus an additional volume of

Gas equal to the percentage set out in effective Tariff Sheet No. 12

of volumes delivered to Shipper in each year of the term hereof to be

retained by Panhandle for use as compressor fuel. No compressor fuel

need be furnished for volumes carried over from any Winter Period

unless Shipper retains more than 20% of its Maximum Stored Quantity

in any year as Carry-over Volumes. In such event, pursuant to

Section 1.2, such Carry-over Volumes in excess of 20% of Shipper's

Maximum Stored Quantity shall be subject to a .25% additional

compressor fuel retention by Panhandle.

1.4 Subject to paragraph 1.1, above, Panhandle shall receive

from Shipper and inject into storage each Month during the Summer

Period the Monthly Stored Volume at flow rates equal to the Average

Daily Stored Volumes set out above; provided, however, Shipper and

Panhandle may mutually agree to daily delivery volumes other than the

Average Daily Stored Volume.

1.5 Where Shipper has designated as the PS Point a point not

located on Panhandle's system, then the maximum quantities for

injection and withdrawal on any Day shall be subject to any

restrictions or other limitations applicable to the lease or storage

agreement between Panhandle and the owner or operator of the storage

facility, in addition to the restrictions and limitations of this

Agreement and Rate Schedule PS.