Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-449-000, Status: Effective

Ninth Revised Sheet No. 282 Ninth Revised Sheet No. 282 : Superseded

Superseding: Eighth Revised Sheet No. 282

GENERAL TERMS AND CONDITIONS

(Continued)

service rights under Rate Schedule FT, EFT, LFT or

HFT, the MAIQ under the Transportation Agreement will

be reduced proportionately by the amount of MDCQ

assigned. Any imbalance in excess of this reduced

MAIQ must be reduced to the new tolerance level in

the month following the completion of the assignment

to avoid balancing charges pursuant to Section 12.11.

(d) When a Releasing Shipper partially assigns its

service rights under a Service Agreement by assigning

service rights between specific Point(s) of Receipt

and Delivery or by assigning only a portion of the

Maximum Daily Contract Quantity, the Releasing

Shipper's Service Agreement shall be deemed to be

modified in accordance with the assignment and the

Releasing Shipper may not utilize the service rights

assigned during the term of the assignment.

(e) If the Releasing Shipper's Service Agreement has been

assigned to a Designated Replacement Shipper for a

period of not more than thirty-one (31) Days, the

Releasing Shipper may not assign the Service

Agreement to the same Replacement Shipper for a term

of not more than thirty-one (31) Days until twenty-

eight (28) Days after the termination of the

assignment unless:

(i) the Service Agreement is posted on the

Messenger system for bidding in accordance

with this Section 15 or

(ii) the capacity release becomes effective after

September 30, 2002 and the Replacement Shipper

has agreed to pay the applicable Maximum Rate

for the service, is on the approved bidders list

and all the other conditions applicable to the

assignment.

(f) If the Releasing Shipper's Service Agreement is

assigned permanently for the remaining term of the

agreement, subject to Panhandle's agreement, the

Releasing Shipper shall have no further responsibility

or obligations under the Service Agreement.

(g) Releasing Shippers may, to the extent permitted as a

condition of the capacity release, recall released

capacity. The recall notification to Panhandle shall

specify the Quantity in terms of total released capacity

entitlements.