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

Fifth Revised Sheet No. 266 Fifth Revised Sheet No. 266 : Superseded

Superseding: Fourth Revised Sheet No. 266

GENERAL TERMS AND CONDITIONS

(Continued)

for service provided under Rate Schedules EFT,

SCT, EIT, LFT and HFT the Scheduling Charge shall

be equal to the sum of the EIT Commodity rates

per Dt. applicable to the Transmission Access

Charge and the Transmission Mileage Charge for

401-500 miles set forth on effective Tariff Sheet

No. 8.

(2) If Panhandle issues an OFO as to any portion of

its system, requiring Shipper(s) to reduce

scheduling variances, the tolerance level, as

defined above, for that portion of its system

shall be reduced from 10% to 5% and the charge

for variances beyond the reduced tolerance level

shall be as stated in Section 12.17 herein in

lieu of the Scheduling Charge described in this

Section 12.11(h)(1). For Shipper(s) under Rate

Schedule SCT, the tolerance level shall be

reduced from 10% to 5%, or 500 Dt., whichever is

greater.