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. 56 Original Sheet No. 56 : Effective

Negotiated Rate Formula shall be evaluated as though the

Recourse Rate applied under such bid or request for the

entire evaluation period. Where the Negotiated Rate results

in revenue which is less than revenue at the Recourse Rate

over the relevant evaluation period, the value of the bids

or requests at the Negotiated Rate(s) shall be evaluated

based on such lower revenue and shall be afforded a

correspondingly lower priority than bids or requests at the

Recourse Rate.

(b) In evaluating bids or requests for firm service, or in

allocating capacity among competing requests for firm

service where one or more bids is at a Negotiated Rate,

Transporter will consider, in assigning value to such bid(s)

or requests, only reservation or demand charge revenue or

other revenue which is guaranteed to be received by

Transporter (i.e., a minimum throughput condition or minimum

bill). For capacity evaluation purposes, the net present

value of any such bid for firm service shall be capped by

the net present value of the maximum applicable reservation

rate for such service over the contract term bid.

26.3 Accounting for Costs and Revenues: The allocation of costs to,

and the recording of revenues from, service at Negotiated Rate(s)

will follow Transporter's normal practices associated with all of

its services under this Tariff. Transporter will maintain

separate records of Negotiated Rate transactions for each billing

period. These records shall include the volumes transported, the

billing determinants, the rates charged and the revenue received

associated with such transactions. Transporter will separately

identify such transactions in Statements G, I and J (or their

equivalent) filed in any general rate proceeding.

26.4 Capacity Release Revenue: Transporter and Shipper may agree

hereunder to a Negotiated Rate which includes payment obligations

or crediting mechanisms in the event of a capacity release which

vary from those set out in Section 11 of these General Terms and

Conditions. Nothing in the foregoing sentence, however, shall

authorize Transporter or Shipper to violate the Commission's

policy with respect to the negotiation of terms and conditions of

service.

27. ACQUIRED CAPACITY

27.1 Transporter may from time to time enter into transportation or

storage arrangements with upstream or downstream entities,

including other interstate pipelines, intrastate pipelines, or