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. 611 First Revised Sheet No. 611 : Effective

Superseding: Original Sheet No. 611

RATE SCHEDULE GDS (Continued)

GENERAL DELIVERY SERVICE

FORM OF SERVICE AGREEMENT

ARTICLE 6

SUCCESSION AND ASSIGNMENTS

This Agreement shall be binding upon and inure to the benefit

of any successor(s) to either Panhandle or Shipper by merger,

consolidation or acquisition. Either Panhandle or Shipper may assign

or pledge this Agreement and all rights and obligations hereunder

under the provisions of any mortgage, deed of trust, indenture or

other instrument which it has executed or may execute hereafter as

security for indebtedness; otherwise, neither Panhandle nor Shipper

shall assign this Agreement or its rights hereunder without first

having obtained the formal written consent of the other(s).

ARTICLE 7

OPERATING PLAN

7.1 Periodic scheduling of the quantities of service requested

hereunder must be provided by Shipper to Panhandle, at the times and

according to the procedures specified in the General Terms and

Conditions.

7.2 For each Month during the term of this Agreement,

Panhandle and Shipper shall develop a monthly operating plan wherein

Shipper shall provide Panhandle with Shipper's nomination of Gas to

be received by Panhandle in accordance with Shipper's underlying Rate

Schedule EFT or SCT Agreement(s) and the Gas to be injected into or

withdrawn from storage in accordance with its underlying Rate

Schedule IOS Agreement or an eligible Rate Schedule FS Agreement.

If Shipper has delivered sufficient Gas to Panhandle (either as

EFT (or SCT) receipts or as Stored Volume) Shipper shall be entitled

to take each Day, at the Point of Delivery, the Maximum Daily

Contract Quantity stated on Exhibit A (as adjusted according to

Article 8, below). As a part of the monthly operating plan described

above, Panhandle shall advise Shipper each Month as to the daily

minimum take that would be required to maintain Shipper's Rate

Schedule EFT (or SCT) service in balance. As a part of the monthly

operating plan, Shipper shall provide Panhandle with a storage use

priority scheme (the order in which to apply delivery volumes to the

component services). If Shipper fails to provide Panhandle with a

storage use priority scheme prior to five Days before the beginning

of a Month Panhandle shall use the following schemes: