Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 01/09/1997, Docket: RP97-185-000, Status: Effective

Third Revised Sheet No. 295 Third Revised Sheet No. 295 : Superseded

Superseding: Substitute First Revised Sheet No. 295

GENERAL TERMS AND CONDITIONS

(Continued)

Buyer/Shipper under Panhandle's First Revised Volume

No. 1 Tariff under Rate Schedules FT, EFT, SCT, IT,

EIT and LFT, various rate schedules under Panhandle's

FERC Gas Tariff, Original Volume No. 2 (as shown

thereon), with the exception of volumes redelivered

from a storage field to the extent that the

Volumetric Surcharge was applicable to the

corresponding volume of gas delivered to the storage

field, or if the injection of such gas into storage

occurred prior to the effective date of this tariff

sheet and with the exception of volumes of gas

transported on any portion of Panhandle's System when

title to such gas passes to another Shipper of gas

for immediate redelivery and subsequent

transportation on Panhandle's System. The amount of

the Volumetric Surcharge shall be as stated in Tariff

Sheet No. 19 of Panhandle's FERC Gas Tariff, First

Revised Volume No. 1, and the applicable rate

schedules of Panhandle's FERC Gas Tariff, Original

Volume No. 2. The Volumetric Surcharge shall be

added to and become a part of the stated Minimum

Rates and stated Maximum Rates for transportation

service provided under Rate Schedules FT, EFT, SCT,

IT, EIT and LFT.

(g) Reservations

If the cost recovery procedures set forth in this

Section 18.3 are made applicable to a Buyer/Shipper

which has filed a petition for review of the orders

of the Commission approving the provisions of this

Section 18.3 or to a Buyer/Shipper who has intervened

in such review proceeding in support of such

petition, the right of Panhandle to assess such

additional charges as may be necessary to assure that

Panhandle may recover the fully allocated share of

the costs encompassed by this Section 18.3 and

applicable carrying costs from such party as may

result from any such litigation is reserved and the

right of Panhandle to use such means of collection of

such costs from such a party is also reserved.