Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 07/01/1996, Docket: RP96-259-000, Status: Effective

First Revisd Sheet No. 297 First Revisd Sheet No. 297 : Superseded

Superseding: Original Sheet No. 297

GENERAL TERMS AND CONDITIONS

(Continued)

(4)The Section 18.4 Recovery Period shall commence

on July 1, 1996 and shall terminate on June 30,

1997. There also shall be a Section 18.4

Reconciliation Recovery Period consisting of the

twelve months commencing September 1, 1997.

(5)Levelized Interest - The interest amount

resulting from the projected amortization of the

Total Second Supplemental Surcharge Amount over

the Section 18.4 Recovery Period in accordance

with Section 154.501(d) of the Commission's

Regulations.

The amount to be recovered from each Shipper for the

Second Supplemental TOP Volumetric Surcharge shall be

allocated to all throughput (including volumes

transported under Storage Related Transportation) and

charged Monthly as a surcharge on rates applicable

under the contracts of each Shipper under Panhandle's

FERC Gas Tariff, First Revised Volume No. 1 under

Rate Schedules FT, EFT, SCT, LFT, IT and EIT, and any

rate schedule which shall replace any of the

foregoing with the exception of volumes redelivered

from Storage to the extent that the Second

Supplemental Volumetric Surcharge was applicable to

the corresponding volume of Gas delivered to Storage,

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 Second

Supplemental Volumetric Surcharge shall be as stated

in Tariff Sheet Nos. 4, 5, 6, 15, 7 and 8 of

Panhandle's FERC Gas Tariff, First Revised Volume No.

1. The Second Supplemental Volumetric Surcharge

shall be added to and become a part of the stated

rates for Transportation service provided under Rate

Schedules FT, EFT, SCT, LFT, IT and EIT.