Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 02/01/2002, Docket: RP00-395-003, Status: Effective

Fourth Revised Sheet No. 34 Fourth Revised Sheet No. 34 : Superseded

Superseding: Third Revised Sheet No. 34

RATE SCHEDULE FT (Continued)

FIRM TRANSPORTATION SERVICE

3.5 Surcharges

Shipper shall pay all surcharges specified in the General

Terms and Conditions or which otherwise may be applicable

to service under this Rate Schedule from time to time.

3.6 Overrun Charges and Unauthorized Overrun Penalties

(a) Overrun Charge for Takes in Excess of MDCQ

If during one or more Days in the billing Month

Shipper takes Quantities of Gas in excess of the

applicable Maximum Daily Contract Quantity as stated

in the Service Agreement (hereinafter called overrun

quantities) for firm service hereunder, Shipper shall

be subject to an Overrun Charge in addition to the

applicable reservation and commodity charges and any

balancing charges that may be applicable pursuant to

Section 12 of the General Terms and Conditions. The

applicable Overrun Charge per Dt. for such overrun

quantities shall be as set forth on the effective

Tariff Sheet No. 4. In addition, subject to the

provisions of Section 3.6(b) of this Rate Schedule,

Shipper shall be subject to an Unauthorized Overrun

Penalty as set forth in Section 12.16 of the General

Terms and Conditions.

(b) Unauthorized Overrun Penalty for Takes During an OFO

Panhandle may issue an OFO and, if it does so,

Panhandle shall notify Shippers through the

Messenger system, the Web Site and by telephone,

and facsimile or via e-mail communication. Once

issued the OFO shall continue until Panhandle

notifies Shippers to the contrary using the above

methods. If the OFO requires the elimination of

unauthorized overruns, the applicable Unauthorized

Overrun Penalty shall be as set forth in Section

12.17(f)(ii) of the General Terms and Conditions.