Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 04/01/2003, Docket: RP03-278-000, Status: Effective

Second Revised Sheet No. 275 Second Revised Sheet No. 275 : Superseded

Superseding: First Revised Sheet No. 275

GENERAL TERMS AND CONDITIONS

(Continued)

Each Shipper under a Corresponding Transportation

Agreement shall be responsible for assuring that

its receipts are in balance with the amounts of its

deliveries, adjusted for Fuel Reimbursement.

Shipper under the Pooling Transportation Agreement

at the time of nomination shall identify each

Corresponding Shipper, the Corresponding

Transportation Agreement and shall state the

Quantities of Gas to be delivered to each

Corresponding Shipper under each Corresponding

Transportation Agreement at the Pool Point.

14.2 In-Field Title Transfers of Storage Inventory

(a) A Shipper under a Storage Rate Schedule may

transfer by sale or otherwise Stored Volumes to any

Shipper under another Service Agreement that

receives Storage service from the same Storage

area, either Market Area Storage Facilities, or

Field Area Storage Facilities, if:

(i) Both the transferee and transferor of the

Stored Volumes provides Panhandle with

verification of the transfer in writing;

(ii) The transfer does not cause the Stored

Volumes to exceed the Maximum Stored Quantity

specified in any Service Agreement; and

(iii) The transfer does not cause the transferor or

transferee to be in violation of any

requirement of Rate Schedule PS.

(iv) The transfer does not result in an increase

in Panhandle's injection or withdrawal

obligations that would impair Panhandle's

ability to meet all of its service

obligations of equal or higher priority.

(b) Panhandle will recognize the transfer for purposes

of computing available Stored Volumes and

applicable Withdrawal and Injection Quantities on a

prospective basis within one Business Day after

receiving the written verification required by

Section 14.2(a)(i).