Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 07/10/2000, Docket: RP00-162-000, Status: Effective

Fourth Revised Sheet No. 289 Fourth Revised Sheet No. 289 : Superseded

Superseding: Substitute Second Revised Sheet No. 289

GENERAL TERMS AND CONDITIONS

(Continued)

18.1 Gas Research Institute (GRI) Funding Unit

(a) Purpose

GRI, an Illinois not for profit corporation, has been

organized for the purpose of sponsoring Research,

Development and Demonstration (RD&D) programs in the

field of natural and manufactured Gas for the purpose

of assisting all segments of the Gas industry in

providing adequate, reliable, safe, economic and

environmentally acceptable Gas service for the

benefit of Gas consumers and the general public in

the United States. Panhandle is a collection agent

for GRI.

For the purpose of funding GRI's approved

expenditures, and subject to the further terms and

conditions set forth in the Stipulation and Agreement

Concerning Post-1993 GRI Funding Mechanism and the

Orders approving such Stipulation and Agreement found

at Gas Research Institute, 62 F.E.R.C. 61,280

(1993), reh'q 63 F.E.R.C. 61,316 (1993), this

Section 18.1 establishes a GRI Funding Unit which

shall be collected for Quantities of Gas transported

under Panhandle's transportation Rate Schedules;

provided, however, such charge shall not be

applicable (1) to discounted transactions except as

expressly provided below, (2) to Shippers which are

interstate pipelines and which include in their rates

a charge for RD&D by GRI, (3) to the transportation

of liquids and/or liquefiables, or (4) to

transportation which is solely gathering service and

provided, further, that a GRI Funding Unit shall not

be applied to the same Quantity of Gas more than

once.

(b) Basis of the GRI Funding Unit

(1)Panhandle's Rate Schedules FT, EFT, SCT, IT,

EIT, LFT and HFT shall include an increment

for a GRI Reservation Funding Unit and a GRI

Commodity Funding Unit, as applicable, for

non-discounted transactions as stated on the

effective Tariff Sheet Nos. 4, 5, 6, 7, 8, 15

and 17. Such GRI Funding Unit shall be that

increment, adjusted to Panhandle's