Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 10/18/1999, Docket: RP99-482-000, Status: Effective

First Revised Sheet No. 284 First Revised Sheet No. 284 : Superseded

Superseding: Original Sheet No. 284

GENERAL TERMS AND CONDITIONS

(Continued)

16. ASSIGNMENT OF UPSTREAM SERVICE RIGHTS

This section sets forth the terms and conditions under which

Panhandle will assign in whole or in part, the rights under executed

Transportation Service Agreements between Panhandle and upstream

pipelines in accordance with 18 C.F.R. 284.242. The Transportation

Agreements subject to assignment pursuant to this Section are:

Colorado Interstate Gas Company - Rate Schedule X-38

Trunkline Gas Company - Rate Schedule PT-Firm

Stingray Pipeline Company - Rate Schedule FT

Assignments of Panhandle's service rights under the above

Transportation Service Agreement shall occur as follows:

16.1 All assignments pursuant to Section 16 shall be permanent.

16.2 Panhandle shall give notice on the Messengerþ system of its

upstream firm service available for assignment under this

Section for at least thirty (30) Days commencing

February 1, 1993, with initial assignments to become

effective on April 1, 1993, or the effective date of this

Section 16, whichever is later, to those making requests

for assignment to Panhandle in writing within such thirty

(30) Day period. Thereafter, any of Panhandle's service

rights that have not been assigned during such thirty (30)

Day period shall remain posted on the Messengerþ system and

available for additional assignment until all such

capacity has been assigned or otherwise disposed of.

16.3 If upstream firm capacity is not assigned and Panhandle is

unable to release available upstream capacity pursuant to

the upstream pipeline's capacity assignment program, it

shall recover costs associated with such "stranded"

upstream capacity as a transition cost, pursuant to

Section 18.9.