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

Original Sheet No. 272C Original Sheet No. 272C : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

pipeline system including, but not limited

to, a Shipper's failure to adhere to the

quality of gas specifications set forth in

Section 3 of these General Terms and

Conditions.

(c) Remedial Actions to Be Taken Before Issuing an OFO

Prior to issuing an OFO Panhandle will take all

reasonable actions to minimize the issuance and

adverse consequences of the OFO. These actions may

include, but are not limited to, requiring firm

shippers to utilize primary Points of Receipt and

Delivery and compliance with the provisions of this

Tariff and the Service Agreement.

(d) Notice

(i) Panhandle will provide as much advance notice

of an OFO as is possible in the circumstances.

Ordinarily, the notice will be issued by 10:30

a.m. CT on the Day before the OFO is to be

effective. The OFO will ordinarily become

effective at the commencement of the Day.

When operating conditions so require,

Panhandle may issue the notice of the OFO

after 10:30 a.m. and may provide that the OFO

will become effective before the commencement

of the next Day. When an OFO becomes

effective at any time other than the

commencement of any Day, Shippers will use

their best efforts to comply with the OFO as

soon as possible but in no event later than

two hours, after which the applicable

Scheduling Charges or Unauthorized Overrun

Penalty provided for in this Section 12.17

shall apply.

(ii) Panhandle shall issue notice of an OFO by

notifying the affected meter operator(s) and

Shippers(s) through the MessengerSM system, the

Web Site and by telephone, and facsimile or

via e-mail communication. Panhandle will post

notification of, and provide updated

information concerning, the OFO on the

MessengerSM System and the Web Site at the

commencement of each Day until Panhandle

notifies the affected meter operator(s) and

the Shipper(s) that the OFO has ended.

(iii) Each notice will provide the time and date of

issuance of the OFO, the time the OFO is to

become effective, the time the OFO is expected

to remain in effect, the action required to be

taken by the Shipper(s), the reason for

issuing the OFO, together with the operating

variables providing the basis for issuing the