Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 03/01/1997, Docket: RP96-348-000, Status: Suspended

First Revised Sheet No. 246 First Revised Sheet No. 246 : Suspended

Superseding: Original Sheet No. 246

GENERAL TERMS AND CONDITIONS

(Continued)

9.4 When in Panhandle's judgment Panhandle will be unable to

satisfy all scheduled deliveries on any portion of its

system due to the failure of Shippers to deliver or cause

to be delivered scheduled receipts, Panhandle may reduce,

in whole or in part, deliveries to Shippers with receipts

scheduled on any portion of Panhandle's system showing

deficient receipts, in the order specified in Section 9.3

hereof, subject to the following conditions:

(a) Notice, pursuant to Section 9.6 hereof, shall be

given to the affected Shippers that deliveries must

be reduced within a time that is reasonable under

the then existing conditions.

(b) Shippers who are able to confirm their receipts to

Panhandle within the time set out in such notice

shall be permitted to maintain their service.

Confirmation shall mean that Panhandle is able, in

good faith, to determine that the Shipper's Natural

Gas is being received, or Shipper has provided a

notarized affidavit by an officer or representative

empowered to bind Shipper that, based on personal

knowledge formed after diligent investigation, the

scheduled quantities (or stated lesser quantities)

are being delivered to Panhandle at the Point(s) of

Receipt nominated by Shipper for the applicable

Service Agreement(s).

the time set out in the notice, deliveries to

Shipper shall be resumed when such confirmation is

provided or when the curtailment ceases.