Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 05/01/1993, Docket: RS92- 22-005, Status: Effective

Original Sheet No. 293 Original Sheet No. 293 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

(c)Applicability

The TOP Fixed Surcharge amounts as shown in column

(1) on Tariff Sheet Nos. 20, 21 and 22 shall apply,

as specified herein below, upon the effectiveness of

this Section 18.3 to those Buyers/Shippers identified

on such tariff sheets.

(d) Recovery of TOP Fixed Surcharge

(1) The amount to be recovered from Buyer or Shipper

through the TOP Fixed Surcharge shall be

reflected on Tariff Sheet Nos. 20, 21 and 22.

Carrying charge reconciliation amounts for the

period February 1, 1991 until the effective date

of this tariff sheet of the cost recovery

procedures herein shall be netted with the total

Principal Amounts and reflected on Tariff Sheet

Nos. 20, 21 and 22.

(2) Each Buyer/Shipper shall have the option, in lieu

of payment of the total TOP Fixed Surcharge

amount, of paying thirty-six (36) monthly

consecutive payments equal to 1/36th of such

amount. Carrying charges on the total TOP Fixed

Surcharge amounts shall be calculated and

included on each monthly invoice for those

Buyers/Shippers electing the thirty-six (36)

month payment option. Notwithstanding such

election, any Buyer/Shipper may, at any time, pay

the entire amount of its unpaid share of TOP

Fixed Surcharges to Panhandle, with no further

obligation for carrying charges. Notwithstanding

any such election, if Buyer's/Shipper's contract

terminates during the period in which such

payments are to be made, Panhandle shall invoice

Buyer/Shipper for the then current unpaid balance

due which shall become due and payable one day