Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

Fourth Revised Sheet No. 91 Fourth Revised Sheet No. 91 : Superseded

Superseding: Third Revised Sheet No. 91

RATE SCHEDULE FS (Continued)

FLEXIBLE STORAGE SERVICE

3.4 Withdrawal Charge

Shipper shall pay a Withdrawal Charge which shall be the

product of the Quantity of Gas actually withdrawn from

Storage and delivered to Shipper at the WS Point during

the Month times the applicable withdrawal charge per Dt.

as set forth on the effective Tariff Sheet No. 14.

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 Charge and Unauthorized Overrun Penalty

Shipper shall pay the applicable Overrun Charge and, if

applicable, the Unauthorized Overrun Penalty per Dt. of Gas

actually delivered at the applicable WS Point and injected

into Storage or withdrawn from Storage and received for

transportation at the applicable WS Point during any Day in

excess of the MDIQ and MDWQ set out in the Service Agreement,

as applicable. The Overrun Charge per Dt. shall be as set

forth on the effective Tariff Sheet No. 14 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 available withdrawal quantities are reduced as a result

of Stored Volume being below the levels specified in the FS

Storage Agreement, the MDWQ as stated in the FS Storage

Agreement shall be deemed to be reduced in accordance with

the ratchets, if any, set forth in the FS Storage Agreement.

The Overrun Charge will not apply to injections during the

Withdrawal Period or withdrawals during the Injection Period

as set forth in the FS Storage Agreement, if the Quantities

injected or withdrawn are within the MDIQ or MDWQ, as

applicable.

3.7 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.

14 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.