Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 10/18/1999, Docket: RP99-482-000, Status: Effective

Fourth Revised Sheet No. 236 Fourth Revised Sheet No. 236 : Superseded

Superseding: Third Revised Sheet No. 236

GENERAL TERMS AND CONDITIONS

(Continued)

(v) If no acceptable offers are received,

Panhandle shall so notify Shipper within 15

days after the close of the Posting Period.

In such event, Shipper may continue to

receive service under a new Long-Term

Agreement with any term Shipper chooses, at

the applicable Maximum Rate or at a rate

agreed to by Panhandle and Shipper. Shipper

must notify Panhandle of its intent and

indicate the term of the new Long-Term

Agreement within 15 days of having been

notified in writing by Panhandle that no

acceptable offer was received. Panhandle

will then be obligated to tender the new

Long-Term Agreement to Shipper within 15

days of Shipper's notification. If Shipper

(1) fails to provide Panhandle the term of

the requested new Long-Term Agreement within

the required 15 day period, or (2) does not

return an executed Service Agreement

reflecting such term to Panhandle within 30

days of the date such contract is tendered,

then Shipper shall be deemed to have elected

not to continue service under a Long-Term

Agreement pursuant to the provisions of

Section 7.2 herein.

(vi) Panhandle shall post the winning bid and

bidder on the Messengerþ system for ninety (90)

Days whether or not the bidder executes a

Service Agreement.

(c) If a Long-Term Agreement is not continued in

accordance with Section 7.2(a) above, such Agreement

shall terminate as specified therein.

(d) The provisions of this Section 7.2 shall not apply to

firm Transportation service initiated pursuant to the

exercise of conversion rights under 18 CFR, Section

284.10, and which took effect between February 13,

1991 and May 18, 1992.

7.3 Panhandle shall not be obligated to tender, execute or

continue a Service Agreement for service at any rate less

than the Maximum Rate set forth in the effective tariff

sheets applicable to the service requested. It shall be

Panhandle's sole discretion to tender, execute or continue

a Service Agreement at any rate less than the applicable

Maximum Rate for the service requested. Panhandle and

Shipper must agree to any rate requested at less than the

applicable Maximum Rate before Panhandle becomes obligated

to tender, execute or continue a Service Agreement for

firm service at any rate less than the applicable Maximum

Rate.