Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 01/01/1996, Docket: RP96- 51-000, Status: Effective

Third Revised Sheet No. 237 Third Revised Sheet No. 237 : Superseded

Superseding: Second Revised Sheet No. 237

GENERAL TERMS AND CONDITIONS

(Continued)

7.4 Once a Service Agreement for firm Transportation or

Storage is executed, the economic value of the Service

Agreement shall be determined in accordance with Section

7.1(b). During the term of the Service Agreement any

change Shipper may make in the terms of the Service

Agreement shall not reduce such economic value of the

Service Agreement to Panhandle without Panhandle's written

consent.

7.5 Elimination of Inactive Interruptible Service Agreements

Panhandle may terminate Shippers' Service Agreements under

Rate Schedules IT, EIT, IIOS, IWS and GPS, upon thirty

(30) days prior written notice to Shippers who have not

submitted nominations to either transport, store Gas, or

park Gas under such Service Agreements within the

immediately preceding twelve (12) Months.