Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

First Revised Sheet No. 254A First Revised Sheet No. 254A : Superseded

Superseding: Original Sheet No. 254A

GENERAL TERMS AND CONDITIONS

(Continued)

(ii) the sum of the Quantities of Gas nominated

by the Releasing Shipper to any secondary

firm Point(s) of Delivery, together with the

sum of the Quantities of Gas nominated to

primary firm Point(s) of Delivery, 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.

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 Delivery to the same extent the Releasing

Shipper could have if the Service Agreement had not

been assigned.