Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 03/01/1997, Docket: RP96-348-000, Status: Suspended

Third Revised Sheet No. 203 Third Revised Sheet No. 203 : Suspended

Superseding: Substitute Second Revised Sheet No. 203

GENERAL TERMS AND CONDITIONS

The following General Terms and Conditions are applicable to any

service provided hereunder:

1. DEFINITIONS

1.1 British Thermal Unit (Btu) shall mean the amount of heat

required to raise the temperature of one (1) avoirdupois

pound of pure water from 58.5øF to 59.5øF under standard

conditions as described in Section 4.2.

1.2 Business Day shall mean from 8:00 A.M. to 5:00 P.M. Central

Time on any weekday excluding Panhandle's company holidays.

1.3 Commission or FERC shall mean the Federal Energy Regulatory

Commission or any successor regulatory agency.

1.4 Contract Year as used in Rate Schedules FT, EFT, SCT, IT,

EIT, IOS, IIOS, GDS, TBS and LFT shall mean an annual

period beginning the first Day of the Month following the

effectiveness of the Service Agreement and ending twelve

Months later; and as used in Rate Schedules WS, PS, IWS

and FS shall mean an annual period beginning April 1 and ending

the following March 31.

1.5 Corresponding Transportation Agreement shall mean a

Transportation Agreement that identifies a Pool Point as a

Point of Receipt and provides for further delivery

downstream of the Pool Point.

1.6 Corresponding Shipper shall mean a Shipper that nominates

receipts of Gas at a Pool Point for subsequent delivery

under a Corresponding Transportation Agreement.

1.7 Daily Scheduling Charge shall mean the charge that applies

to a Transportation Agreement when the difference between

the sum of the actual Quantities of Gas delivered at any

Point of Delivery and the sum of Quantities of Gas

nominated at such point exceeds the tolerance level. The

Daily Scheduling Charge under normal conditions is set

forth in Section 12.11(h) of the General Terms and

Conditions and the Daily Scheduling Charge that applies

when Panhandle declares an extreme conditions situation is

set forth in Section 12.17 of the General Terms and

Conditions.