Panther Interstate Pipeline Energy, L.L.C.

Original Volume No. 1

Effective Date: 02/01/2004, Docket: CP03-338-001, Status: Effective

Original Sheet No. 46 Original Sheet No. 46 : Effective

in connection with their agreement to a Negotiated Rate

under an FT Agreement, agree upon Releasing Shipper's

payment obligations and crediting mechanisms in the event of

a capacity release that vary from or are in addition to

those set forth in this Section. The Releasing Shipper

shall receive a demand credit equaling the demand dollars

for which Transporter bills the Replacement Shipper. A

demand rate for the purposes of this Section 11 consists of:

(i) the base demand rate, and (ii) all applicable

surcharges. Any discount from said rate comes first off the

surcharges and then off the base demand rate. Therefore, a

Releasing Shipper paying a discounted rate is only entitled

to receive any revenues from the release of its capacity

that exceed the amount of the applicable surcharges.

(g) Transporter shall bill a Replacement Shipper in accordance

with Section 10 of these General Terms and Conditions based

upon the rates, charges, and surcharges incorporated in the

transportation service agreement between Transporter and the

Replacement Shipper. The commodity charges for the

Replacement Shipper will include the maximum commodity rate

under the applicable rate schedule including all

adjustments. If the Replacement Shipper fails to pay all or

any portion of any bill by the due date specified on the

bill, Transporter shall send an invoice to the Releasing

Shipper for all unpaid amounts up to the amount of the

Releasing Shipper's reservation charge, which the Releasing

Shipper shall pay to Transporter with interest on the unpaid

amount, which interest shall be calculated from the date

that Transporter credited the Releasing Shipper for the

applicable demand charges in accordance with (f) above. The

Releasing Shipper shall submit the payment within ten days

after receipt of Transporter's invoice. The Releasing

Shipper shall be responsible for obtaining reimbursement for

any such payment from the Replacement Shipper. Failure of

either the Replacement Shipper or the Releasing Shipper to

pay bills shall entitle Transporter to exercise the remedies

available under the applicable transportation service

agreement and this Tariff, including suspension or

termination of service to the Releasing Shipper and/or the

Replacement Shipper, as well as any other remedies available

to Transporter.

(h) Except in case of permanent assignment, any increase in

Transporter's rates, charges, and surcharges shall remain