Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 07/10/2000, Docket: RP00-162-000, Status: Effective

Original Sheet No. 112 Original Sheet No. 112 : Superseded

RATE SCHEDULE HFT (Continued)

HOURLY FIRM TRANSPORTATION SERVICE

In addition to the otherwise applicable charges set

forth for monthly service on the effective Tariff

Sheet No. 17 for November through March, a Shipper

electing CRPþ will be allowed to pay up to 80% of the

Reservation Charges due for the period April through

October in the preceding November through March

period. CRPþ elections which specify the portion of

the April through October Reservation Charges to be

paid during the preceding November through March

period will be due by October 1 of each year to be

effective November 1. Revised CRPþ elections will be

allowed up to the fifteenth Business Day preceding

the Month of Gas flow, for prospective application

only, so long as the Shipper's total annual

obligations for Reservation Charges during the 12

month CRPþ Period are not affected by such revisions

and provided that such revisions do not result in the

Reservation Charge for any month during the April

through October period exceeding the charge which

would have been applicable had the CRPþ election not

been made.

(c) Maximum CRPþ reservation rates for each Shipper shall

be reflected on effective Tariff Sheet No. 26.

(d) The usage rates set forth on effective Tariff Sheet

No. 17 shall not be affected by the provisions of

this Section 3.10.

3.11 Negotiated Rates

Shipper and Panhandle may agree, on a prospective basis,

to a Negotiated Rate with respect to the charges

identified in Sections 3.1, 3.2 and 3.3 herein which may

be less than, equal to or greater than the Maximum Rate;

shall not be less than the Minimum Rate; may be based on a

rate design other than straight fixed variable; and may

include a minimum quantity. Such Negotiated Rate shall be

set forth on Exhibit C of the executed Service Agreement

and on the currently effective Tariff Sheet No. 27. The

Maximum Rate shall be available to any Shipper that does

not choose a Negotiated Rate.

Shippers paying a Negotiated Rate which exceeds the

Maximum Rate will be considered to be paying the Maximum

Rate for purposes of scheduling, curtailment and

interruption, and calculating the economic value of a

request for unsubscribed firm capacity. In addition,

a Shipper that does not agree to pay any surcharges

will not be granted a scheduling preference that deems

such surcharges have been paid. Replacement Shippers may

not bid or pay a rate greater than the Maximum Rate and

are not eligible for Negotiated Rates.