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Substitute First Revised Sheet No. 304 Substitute First Revised Sheet No. 304 : Superseded

Superseding: Original Sheet No. 304

GENERAL TERMS AND CONDITIONS

(Continued)

(g) Settlement Volumetric Surcharge

(1) Applicability

This Section 18.5(g) is applicable to Shippers

served under Panhandle's Rate Schedules FT, EFT,

SCT, IT, EIT and LFT and to Shippers served under

Panhandle's FERC Gas Tariff, Original Volume No.

2 except that it shall not apply to:

(i) volumes of gas withdrawn from storage, to

the extent the Settlement Volumetric

Surcharge Unit Amount was applicable to the

transportation of the corresponding volumes

of gas into storage or if the injection into

storage occurred prior to the commencement

of charges hereunder; and

(ii) volumes of gas transported on any portion of

Panhandle's 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 Volumetric Surcharge Unit

Amounts

Panhandle shall recover from affected Shippers

0.60› per dekatherm of all gas transported on

Panhandle's system, which amount will be

specified on the effective Tariff Sheet Nos. 4,

5, 6, 7, 8 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

18.5(a), whichever shall later occur.