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

First Revised Sheet No. 250 First Revised Sheet No. 250 : Superseded

Superseding: Second Sub Original Sheet No. 250

GENERAL TERMS AND CONDITIONS

(Continued)

(i) the sum of the Quantities of Gas nominated by the

Replacement Shipper from any secondary firm

Point(s) of Receipt, together with the sum of the

Quantities of Gas nominated from primary firm

Point(s) of Receipt, adjusted for Fuel

Reimbursement, shall not exceed the Maximum Daily

Contract Quantity in the Replacement Shipper's

Service Agreement; provided, however, if the

Replacement Shipper utilizes two (2) or more

discrete pipeline segments, the sum of the

Quantities of Gas nominated by the Replacement

Shipper from all Point(s) of Receipt may exceed

the Maximum Daily Contract Quantity specified in

the Service Agreement so long as the Quantities

nominated for transportation in a pipeline segment

do not exceed the Maximum Daily Contract Quantity

applicable to such segment; and

(ii) the sum of the Quantities of Gas nominated by

the Releasing Shipper from any secondary firm

Point(s) of Receipt, together with the sum of

the Quantities of Gas nominated from primary firm

Point(s) of Receipt, adjusted for Fuel

Reimbursement, shall not exceed the unassigned

Maximum Daily Contract Quantity in the Releasing

Shipper's Service Agreement; provided, however,

that where a Releasing Shipper releases a segment

or segments of its service rights, the Releasing

Shipper may nominate for Transportation on any

Day, up to the unassigned Maximum Daily Contract

Quantity in its Service Agreement applicable to

any segment wherein it has retained service

rights.

(iii) If the Releasing Shipper and the Replacement

Shipper nominate Quantities of Gas in segments that

overlap, the Quantities shall be scheduled in

accordance with Section 8.8 of these General Terms

and Conditions. If the Quantities have equal

priority and the sum of the Quantities cannot be

scheduled, the Quantities shall be scheduled

pro-rata unless the Releasing Shipper specifies

otherwise in its release notice.

(c) If the Shipper's Service Agreement has been assigned

entirely to a Replacement Shipper pursuant to Section

15 of these General Terms and Conditions, the

Replacement Shipper may nominate Quantities at

Point(s) of Receipt to the same extent the Releasing

Shipper could have if the Service Agreement had not

been assigned.

(d) If a Shipper nominates Quantities of Gas for

transportation from a secondary firm Point(s) of

Receipt, Shipper shall retain its priority at the

primary firm Point(s) of Receipt designated in the