Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 02/01/2002, Docket: RP00-395-003, Status: Effective

Fifth Revised Sheet No. 242 Fifth Revised Sheet No. 242 : Superseded

Superseding: Fourth Revised Sheet No. 242

GENERAL TERMS AND CONDITIONS

(Continued)

(a) Scheduling of Receipts

(1) Firm service from primary Point(s) of Receipt,

adjusted for Fuel Reimbursement.

(2) Firm service from secondary Point(s) of Receipt

within the Primary Path, adjusted for Fuel

Reimbursement, beginning with service charged

the applicable Maximum Rate followed by firm

service from secondary Point(s) of Receipt

within the Primary Path charged a rate less than

the applicable Maximum Rate in sequence starting

with the rate most proximate to the Maximum Rate

(expressed as a percentage of the Maximum Rate).

Within each category, Quantities of Gas will be

scheduled pro-rata.

(3) Firm service from secondary Point(s) of Receipt

outside the Primary Path, adjusted for Fuel

Reimbursement, beginning with service charged

the applicable Maximum Rate followed by firm

service from secondary Point(s) of Receipt

outside the Primary Path charged a rate less

than the applicable Maximum Rate in sequence

starting with the rate most proximate to the

Maximum Rate (expressed as a percentage of the

Maximum Rate). Within each category, Quantities

of Gas will be scheduled pro-rata.

(4) Interruptible service from Point(s) of Receipt,

beginning with interruptible service charged the

applicable Maximum Rate, followed by

interruptible service from Point(s) of Receipt

charged a rate less than the applicable Maximum

Rate in sequence starting with the rate most

proximate to the Maximum Rate (expressed as a

percentage of the Maximum Rate). Interruptible

service provided under Rate Schedule EIT will be

scheduled before interruptible service provided

under Rate Schedule IT charged a rate equally

proximate to the Maximum Rate (expressed as a

percentage of the Maximum Rate). Authorized

Quantities in excess of the MDCQ shall be

scheduled as interruptible. Within each

category of interruptible service,

Transportation shall be scheduled in sequence,

starting with the service with the earliest

request date.

(5) Gas Parking Service.