Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 260 Original Sheet No. 260 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

Percentage

Imbalance Level

in Excess of MAIQ Purchase Price

0% - 5% 1.1 x Mid-Continent Spot Price

> 5% - 10% 1.2 x Mid-Continent Spot Price

>10% - 15% 1.3 x Mid-Continent Spot Price

>15% - 20% 1.4 x Mid-Continent Spot Price

>20% 1.5 x Mid-Continent Spot Price

The percentage imbalance level shall be

calculated by dividing the imbalance in excess of

MAIQ by the actual Quantity of Gas delivered

during the Month unless the percentage imbalance

level would be lower if calculated using

operating data provided pursuant to Section 12.9

of these General Terms and Conditions, in which

case the percentage imbalance level shall be

calculated using such operating data.

(b)Interruptible Service Monthly Contract Balancing

For the purposes of this Section 12.11(b), the

Maximum Monthly Imbalance Quantity (MMIQ) shall be

established as the product of .05 times the actual

volumes delivered under an interruptible

Transportation Agreement for the Month, or 1,000 Dt.,

whichever is greater.

Each Month, Panhandle shall determine for each

Shipper receiving service under Rate Schedules IT or

EIT the Shipper's imbalance based on the Quantities

of Gas received and delivered in the prior Month

after minimizing the imbalances in accordance with

Section 12.11(d) of these General Terms and

Conditions. The resulting excess receipts and

deliveries shall be handled as follows: