Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 01/25/1996, Docket: RP95-397-003, Status: Effective

Substitute First Revised Sheet No. 303 Substitute First Revised Sheet No. 303 : Superseded

Superseding: Original Sheet No. 303

GENERAL TERMS AND CONDITIONS

(Continued)

not apply to firm service for the transportation of

volumes of gas transported on any portion of the

system for one Shipper, when title to such gas passes

to another Shipper of gas for immediate redelivery

and subsequent transportation on Panhandle's System.

(2) Recovery of Settlement Demand (or Reservation)

Surcharge Unit Amounts

Panhandle shall recover from affected Buyers/Shippers

$0.15 per dekatherm of monthly contract demand, which

amount will be specified on the effective Tariff

Sheet Nos. 4, 5, 6 and 15 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 for a period of sixty (60)

months commencing with the effective date of Section

32 of Panhandle's Former Tariff or the first day of

the month commencing after the effectiveness of the

Settlement identified in Section 18.5(a), whichever

shall later occur.

(3) Billing and Payment of Settlement Demand (or

Reservation) Surcharge Unit Amounts

Panhandle shall include charges for applicable

Settlement Demand (or Reservation) Surcharge Unit

Amounts in its regularly scheduled invoices to

affected Shippers to whom the Settlement Demand (or

Reservation) Surcharge Unit Amounts are applicable.

(4) Survivability of Settlement Demand (or Reservation)

Surcharges

The provisions of this Section 18.5(f) respecting

Settlement Demand (or Reservation) Surcharge Unit

Amounts shall be fully applicable to successor and

replacement rate schedules to the extent the period

of the effectiveness of these charges has not

expired.