Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 06/15/2003, Docket: RP03-479-000, Status: Effective

Second Revised Sheet No. 238 Second Revised Sheet No. 238 : Superseded

Superseding: First Revised Sheet No. 238

GENERAL TERMS AND CONDITIONS

(Continued)

8. NOMINATION AND SCHEDULING OF SERVICE

8.1(a) If Shipper desires the Transportation or Storage of

Gas on any Day under Panhandle's firm or interruptible

Rate Schedules, Shipper shall furnish to Panhandle

written nominations indicating Quantities of Gas to be

received and delivered or stored by Panhandle, by

individual Point of Receipt and individual Point of

Delivery, as required below. Such nominations shall

reflect the Quantities of Gas for each Point of

Receipt and each Point of Delivery. Such nominations

also shall be in balance, except to the extent they

reflect any previous imbalance make-up Quantities of

Gas and shall reflect scheduled daily variations.

Nominations for Point(s) of Receipt shall include

applicable Fuel Reimbursement Quantities. Overrun

Quantities may be requested either in Shipper's

standard nomination or in a separate nomination.

(b) If, at any time Shipper's receipt nominations and

receipt actuals or delivery nominations and delivery

actuals for any contract are out of balance by the

greater of 1,000 Dt. or 5% of the nomination or if the

difference between actual receipts and actual

deliveries is greater than 5% of the delivery

nominations, Panhandle shall be entitled, upon notice

to Shipper, to adjust Shipper's nominations to bring

them into balance. If actual receipts or deliveries

are reduced by a meter operator, Panhandle shall be

entitled, upon notice to Shipper, to adjust Shipper's

nominations for the affected contracts to bring them

into balance. Panhandle's entitlement to adjust

Shipper's nominations shall not relieve Shipper of the

obligation to pay any balancing, scheduling or any

other penalties provided for in these General Terms

and Conditions.