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

Fourth Revised Sheet No. 280 Fourth Revised Sheet No. 280 : Superseded

Superseding: Third Revised Sheet No. 280

GENERAL TERMS AND CONDITIONS

(Continued)

assignment, Panhandle will tender the Addendum to the

Capacity Release Service Agreement to the Replacement

Shipper who submitted its bid first unless, in

accordance with Section 15.2(b), the Releasing

Shipper has specified an alternative method for

breaking ties, in which event the method specified by

the Releasing Shipper shall be used. If there are

multiple bids meeting the minimum conditions,

Panhandle shall rank the bids and award the bids,

best bid first, until all offered capacity is

awarded. The Capacity Release Service Agreement

Addendum number shall be assigned when capacity is

awarded.

(b) If the Releasing Shipper has notified Panhandle in

the Release Notice that it has arranged a Designated

Replacement Shipper and no party is eligible to

submit a bid for the assignment, Panhandle will issue

the Addendum to the Capacity Release Service

Agreement to the Designated Replacement Shipper.

(c) If the Releasing Shipper has notified Panhandle in

the Release Notice that it has arranged a Designated

Replacement Shipper who has agreed to pay less than

the applicable Maximum Rate for the service, the

Designated Replacement Shipper may match the bid that

has the greatest economic value within the time

period specified in Section 15.4.

(d) Panhandle will issue the Addendum to the Capacity

Release Service Agreement within one hour of the

posting of the award of a release. If all the

information provided by the Releasing Shipper,

bidder, and Designated Replacement Shipper is valid,

the Replacement Shipper is creditworthy, and there

are no special terms and conditions, Panhandle will

issue and execute the Addendum at the same time.

(e) Panhandle shall post the winning bid and bidder on

the Messenger system for ninety (90) Days.

(f) If an Addendum to the Capacity Release Service

Agreement is not tendered to a party submitting a

prepayment deposit with its bid, the prepayment

deposit will be refunded with carrying charges to

such party within two (2) Business Days.