Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

Original Sheet No. 294 Original Sheet No. 294 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

prior to the expiration of Buyer's/Shipper's

contract. Upon receipt of such invoice,

Buyer/Shipper may elect to continue making

payments according to its prior elections by

continuing to do so. Such action shall

constitute Buyer's/Shipper's irrevocable

agreement to pay such sums without condition or

qualification.

(3) Carrying charges on unpaid principal amounts for

those Buyers/Shippers electing the thirty-six

(36) month amortization option shall be

determined in accordance with Section 154.67 of

the Commission's Regulations.

(e) Billing and Payment

Panhandle shall render bills to Buyer/Shipper for TOP

Fixed Surcharges on or after the tenth (10th) day of

each month. Buyer/Shipper shall pay Panhandle, at

its designated office, on or before the tenth (10th)

day after such billing. Should Buyer/Shipper fail to

pay any amount which shall become due hereunder when

such amount is due, interest thereon shall accrue at

the rate computed in accordance with Section

154.67(c) of the Commission's Regulations, until the

entire amount is paid or collected. The TOP Fixed

Surcharge amount shall be payable in a single lump

sum or as a fixed monthly charge to those

Buyers/Shippers who have elected the thirty-six (36)

month payment option.

(f) TOP Volumetric Surcharge

The amount to be recovered from each Buyer/Shipper

for the TOP Volumetric Surcharge shall be allocated

to all throughput and charged monthly as a surcharge

on rates applicable under the contracts of each