Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 06/15/2003, Docket: RP03-479-000, Status: Effective

Ninth Revised Sheet No. 278 Ninth Revised Sheet No. 278 : Superseded

Superseding: Eighth Revised Sheet No. 278

GENERAL TERMS AND CONDITIONS

(Continued)

(b) The posting will commence upon receipt of the Release

Notice; unless otherwise specified by the Releasing

Shipper.

15.4 Bidding For Assignments

(a) Except as provided in Section 15.4(b), a party

must bid on the Messenger system to accept

assignment of the Service Agreement under the

conditions posted in conjunction with a Release

Notice. Bids must be expressed in dollars and cents

or percents of Maximum Rate, whichever is stated in

the Release Notice. The maximum reservation rate

that may be bid shall not exceed the Maximum Rate for

the applicable service being released as set forth on

the applicable currently effective tariff sheets. In

order to submit a valid bid, any party, including a

Designated Replacement Shipper, must be on the

approved bidders list. To be on the approved bidders

list, a party must meet the provisions of Section 6

of these General Terms and Conditions and must have

executed a Capacity Release Service Agreement with

Panhandle in the form as set forth in this Tariff

(Capacity Release Service Agreement). A party shall

remain on the approved bidders list until such party

notifies Panhandle to the contrary, no longer meets

the credit qualifications in Section 6.2 of these

General Terms and Conditions or is suspended from the

approved bidders list in the event and for such time

as such party fails to pay part or all of the amount

of any bill for service in accordance with Section 17

of these General Terms and Conditions.

(b) No bids are required for Service Agreements where

the Releasing Shipper notifies Panhandle in its

Release Notice that it has arranged for the

assignment of its Service Agreement to a Designated

Replacement Shipper that is on the approved bidders

list and:

(i) the Designated Replacement Shipper has agreed to

a term for the assignment of not more than

thirty-one (31) Days, or