Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

Original Sheet No. 262 Original Sheet No. 262 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

(2)Excess Deliveries

When actual deliveries exceed actual receipts,

adjusted for Fuel Reimbursement, an imbalance due

Panhandle shall be carried without charge up to

the MMIQ. Any imbalance in excess of the MMIQ

shall be purchased by Shipper from Panhandle

according to the following schedule:

Percentage

Imbalance Level

in Excess of MMIQ 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

MMIQ by the actual quantity of gas delivered

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. Any IT or EIT excess deliveries

up to the MMIQ must be nominated and scheduled to

be received by Panhandle from Shipper during the

next Month. Any portion of the MMIQ existing at

the end of a Month which has not been nominated

and scheduled to be made up during the next Month

shall be purchased by Shipper from Panhandle at

the 0-5% Percentage Imbalance Level in Excess of

MMIQ.