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

Fourth Revised Sheet No. 255 Fourth Revised Sheet No. 255 : Superseded

Superseding: Third Revised Sheet No. 255

GENERAL TERMS AND CONDITIONS

(Continued)

(d) If a Shipper nominates Quantities of Gas for

Transportation to a secondary firm Point(s) of

Delivery, Shipper shall retain its priority at the

primary firm Point(s) of Delivery designated in the

Transportation Agreement and may nominate from the

primary firm Point(s) of Delivery, subject to the

provisions of Sections 8 and 9 of these General Terms

and Conditions.

11.6(a) The reservation components applicable to Shippers

under Rate Schedules FT, EFT, LFT and HFT shall be computed

using the Quantities of Gas assigned to the primary firm

Point(s) of Delivery in the Service Agreement except as

provided in Section 11.6(b). Subject to the provisions of

Section 11.9 hereof, the reservation components shall be

pro-rated to adjust for changes during the Month in the

Point(s) of Delivery designated in the Service Agreement or

the Quantities assigned thereto.

(b) Quantities of Gas assigned to a secondary firm Point(s)

of Delivery shall serve to increase the reservation

components to reflect the additional rate zones or

mileage segments associated with such Quantities if:

(1) the Quantity assigned to a secondary firm Point(s)

of Delivery located on Panhandle's Gathering Facilities

exceeds the Maximum Daily Contract Quantity assigned to all

primary firm Points of Delivery on such Gathering facilities

and downstream thereof; or (2) the Quantity assigned to a

secondary firm Point(s) of Delivery located in the Field

Zone exceeds the Maximum Daily Contract Quantity assigned

to all primary firm Points of Delivery located in the Field

Zone and downstream thereof; or (3) the Quantity assigned to a

secondary firm Point(s) of Delivery in the Market Zone exceeds

the Maximum Daily Contract Quantity assigned to all primary

firm Points of Delivery located in the same mileage segment of

the Market Zone and downstream thereof.

11.7 A secondary firm Point of Delivery is not eligible

for service under Rate Schedule GDS.

11.8 Shippers under Rate Schedule FT, EFT, IT, EIT, LFT or GPS

which designate and utilize a Pool Point as a Point

of Delivery shall be subject to the terms and

conditions of Section 14 herein.