Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 03/01/1997, Docket: RP96-348-003, Status: Effective

Sub Second Revised Sheet No. 245 Sub Second Revised Sheet No. 245 : Superseded

Superseding: Substitute First Revised Sheet No. 245

GENERAL TERMS AND CONDITIONS

(Continued)

9. CURTAILMENT AND INTERRUPTION

9.1 Panhandle shall have the unqualified right to interrupt

Transportation Services or Storage Services or Gas Parking

Service or all such services at any time under Panhandle's

interruptible Rate Schedules to provide service under

Panhandle's firm Rate Schedules. Gas Parking Service will

be interrupted first and then interruptible services shall

be interrupted in sequence, starting with interruptible

service charged the rate least proximate to the applicable

maximum rate. Within each rate category of interruptible

service, service shall be interrupted in sequence,

starting with the service most recently requested and, if

necessary, pro-rata by request date.

9.2 Panhandle shall have the right to curtail or discontinue

Transportation Services or Storage Services or Gas Parking

Service or all such services, in whole or in part on all

or a portion of its system at any time for reasons of

Force Majeure or when in Panhandle's sole judgment,

capacity or operating conditions so require or it is

desirable or necessary to make modifications, repairs or

operating changes to its system. Panhandle shall provide

Shipper such notice of the curtailment as is reasonable

under the circumstances.

9.3 In the event of curtailment pursuant to Section 9.2 above,

Gas Parking Service shall be curtailed first and then

interruptible services shall be curtailed in sequence,

starting with interruptible service charged the rate least

proximate to the applicable Maximum Rate. Within each

rate category of interruptible service, service shall be

curtailed in sequence, starting with the service most

recently requested and, if necessary, pro-rata by request

date. For any condition requiring curtailment at or west

of Panhandle's Haven, Kansas Compressor Station, Panhandle

shall curtail firm services in the following order (1)

service from secondary Point(s) of Receipt outside the

Primary Path, (2) service from secondary Point(s) of

Receipt within the Primary Path and (3) service from

Primary Point(s) of Receipt. For any condition requiring

curtailment east of Panhandle's Haven, Kansas Compressor

Station, Panhandle shall curtail firm services in the

following order (1) service from secondary Point(s) of

Delivery outside the Primary Path, (2) service from

secondary Point(s) of Delivery within the Primary Path and

(3) service from Primary Point(s) of Delivery. Within

each category of firm service curtailment shall be on a

pro-rata basis based on scheduled Quantities of Gas

regardless of rates or request date.