Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

Second Revised Sheet No. 41 Second Revised Sheet No. 41 : Superseded

Superseding: First Revised Sheet No. 41

RATE SCHEDULE EFT (Continued)

ENHANCED FIRM TRANSPORTATION SERVICE

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. 5. In addition, subject to the

provisions of Section 3.6(c) 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) Takes in Excess of Permissible Hourly Deliveries

If, pursuant to Section 5 hereof, Shipper has been

notified that it must limit takes to one-sixteenth of

the Quantities nominated for delivery at the Point(s)

of Delivery, Shipper must use its best efforts to

limit its takes to one-sixteenth of the Quantities

nominated for delivery at the Point(s) of Delivery as

soon as possible, but in no event later than two

hours following notification. If, after such two

hours, the Shipper's takes exceed such hourly

limitation for any hour during the next twenty-four

hour period, Shipper shall pay the overrun charges as

set forth on the effective Tariff Sheet No. 5, in

addition to the applicable commodity rates.