Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 06/02/2000, Docket: RP97- 29-004, Status: Effective

Second Revised Sheet No. 273 Second Revised Sheet No. 273 : Superseded

Superseding: Sub First Revised Sheet No. 273

GENERAL TERMS AND CONDITIONS

(Continued)

13. POLICY FOR CONSTRUCTION OF NEW RECEIPT OR DELIVERY FACILITIES

All requests for new interconnects must be made in writing. The

party requesting the new interconnect shall reimburse Panhandle or

cause Panhandle to be reimbursed for any and all reasonable costs and

expenses incurred in constructing, establishing or modifying the

facilities required to establish a new interconnection on existing

facilities for receipt or delivery of Gas hereunder. In the

alternative, the party requesting the interconnect may perform the

construction at its own cost in compliance with Panhandle's technical

requirements. In this regard, all new receipt and delivery meters

shall require EGM which shall be owned by Panhandle and all new

delivery meters shall require a Flow Control Device with pressure

override features that can be remotely operated by Panhandle.

Panhandle also must be the custody transfer party at the proposed

facility.

In addition to the above requirements, Panhandle will agree to

construct a new interconnect or modify an existing interconnect on

the following terms:

(1) The construction of the new interconnect will not create

any significant operational problems for Panhandle;

(2) The proposed interconnect will not adversely affect the

rendition of existing service or adversely alter the

operation of the pipeline system;

(3) The new interconnect must be at a mutually agreeable

location on the Panhandle system; provided, however, that

Panhandle may not deny a customer's request for specific

placement of the interconnect without adequate

operational, environmental, or legal justification;

(4) In order to properly and prudently design and size the new

interconnect, Panhandle must be provided with reasonable

and reliable data concerning the interconnecting

facilities, including delivery pressures, and anticipated

hourly, daily, monthly and annual volume levels of the

service that supports the new interconnect and such other

data as is reasonably required to construct the

interconnect facility;