Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

Third Revised Sheet No. 75 Third Revised Sheet No. 75 : Superseded

Superseding: Second Revised Sheet No. 75

RATE SCHEDULE PS (Continued)

PEAKING STORAGE SERVICE

4.6 Overrun Charge and Unauthorized Overrun Penalty

Shipper shall pay the Overrun Charge and, if applicable,

the Unauthorized Overrun Penalty per Dt. of Gas actually

delivered at the PS Point and injected into Storage or

withdrawn from Storage and received for transportation at

the PS Point during any Day in excess of the MDIQ and MDWQ

set out in the Storage Agreement and in this Rate

Schedule, as applicable. The Overrun Charge per Dt. shall

be as set forth on the effective Tariff Sheet No. 12 and

the Unauthorized Overrun Penalty shall be as set forth in

Sections 12.16 and 12.17 of the General Terms and

Conditions. For purposes of computing Overrun Charges and

Unauthorized Overrun Penalties applicable to withdrawals

in excess of MDWQ when Stored Volume falls below 30% of

MSQ, the MDWQ as stated in the PS Storage Agreement shall

be deemed to be reduced in accordance with the ratchets

set forth in Section 2 of this Rate Schedule. The Overrun

Charge and Unauthorized Overrun Penalty shall not apply to

Winter Period injections if the Quantities injected are

within the MDIQ.

4.7 Range of Rates

Unless otherwise agreed to in writing by Shipper and

Panhandle, any rate applicable to a Shipper for service

hereunder, by reference to the effective Tariff Sheet No.

12 shall be the applicable Maximum Rate(s) set forth

thereon. If an amount less than the applicable Maximum

Rate(s) and not less than the applicable Minimum Rate(s)

is agreed upon, such amount shall be applicable

prospectively.

4.8 Fuel Reimbursement

Shipper shall reimburse Panhandle in kind for fuel usage

and lost or unaccounted for Gas pursuant to the terms and

conditions of the Service Agreement and as stated on the

effective Tariff Sheet No. 12 for service hereunder. If

the Stored Volume of any Shipper is not reduced to 20% of

Maximum Stored Quantity or less prior to April 1 of any

Contract Year, then Panhandle shall retain .25% of the

excess Stored Volume over 20% of the Maximum Stored

Quantity to compensate for additional compressor fuel

required.