Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 05/01/1993, Docket: RS92- 22-005, Status: Effective

Original Sheet No. 257 Original Sheet No. 257 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

12.7 Should Shipper be unable to provide Quantities of Gas

scheduled at the Point(s) of Receipt on any Day, then

Panhandle shall not be obligated to deliver Gas at the

Point(s) of Delivery on such Day.

12.8 Panhandle shall have the unqualified right to commingle

Gas transported hereunder with Gas from other sources, and

to treat and handle all such Gas as its own. Unless

Shipper or Shipper's designee elects to exercise its

rights to process Gas for removal of moisture, helium,

natural gasoline, butane, propane, or other liquefiables

or inerts and has made arrangements for such processing at

an existing point on Panhandle's system, Panhandle will

have the unqualified right to process such gas for the

purpose of removing such moisture, helium, natural

gasoline, butane, propane, or other liquefiables or

inerts, and the ownership of such moisture, helium,

natural gasoline, butane, propane, or other liquefiables

or inerts, shall be vested in Panhandle. Panhandle must

be advised prior to January 1 and July 1 of each year by

Shipper or Shipper's designee for the following six (6)

months of Shipper's or Shipper's designee's exercise of

their right to process Gas for removal of such moisture,

helium, natural gasoline, butane, propane, or other

liquefiables or inerts and of the arrangements made

therefor. It is recognized that Gas delivered at a Point

of Delivery may not be the same molecules as those

received at any Point of Receipt, and that Panhandle's

sole obligation is to deliver the Thermal Equivalent of

Quantities of Gas received, adjusted for Fuel

Reimbursement.

12.9 Shipper shall have the responsibility to maintain a

concurrent balance between Quantities of Gas received,

adjusted for appropriate Fuel Reimbursement, and

Quantities of Gas delivered, based on the best

information available to Shipper. Panhandle shall make

available to Shipper information regarding daily receipts

and daily deliveries based on the best operating

information (hereinafter called Operating Data) available