Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 01/25/1996, Docket: RP95-397-003, Status: Effective

Substitute Original Sheet No. 95 Substitute Original Sheet No. 95 : Superseded

RATE SCHEDULE LFT (Continued)

LIMITED FIRM TRANSPORTATION SERVICE

3. RATES

The rates and charges for service under this Rate Schedule LFT

shall be as follows:

3.1 Transmission Charge

If Shipper designates a Point(s) of Receipt or a Point(s)

of Delivery on the transmission portion of Panhandle's

system, Shipper shall pay a Monthly Transmission Charge

which consists of a reservation component and a commodity

component.

(a) The reservation component of the Transmission Charge

shall be the product of the MDCQ times the applicable

Transmission reservation rates per Dt. as set forth

on the effective Tariff Sheet No. 15. The

reservation component shall be pro-rated for the

first and last contract Months to adjust for the

number of Days during those Months service was

available.

(b) The commodity component of the Transmission Charge

shall be the product of the actual Quantity of Gas

delivered during the Month times the applicable

Transmission commodity rates per Dt. as set forth on

the effective Tariff Sheet No. 15.

(c) If both the Point(s) of Receipt and the Point(s) of

Delivery are located within the Field Zone, the

applicable rates shall be as set forth on the

effective Tariff Sheet No. 15 for service within the

Field Zone only; if both the Point(s) of Receipt and

Point(s) of Delivery are located within the Market

Zone, the applicable rates shall be as set forth on

the effective Tariff Sheet No. 15 for service within

the Market Zone only; if the Point(s) of Receipt and

the Point(s) of Delivery are located in different

zones, the applicable rates shall be derived by

adding the effective rates for service in the Field

Zone and the Market Zone.