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Substitute First Revised Sheet No. 307 Substitute First Revised Sheet No. 307 : Superseded

Superseding: Original Sheet No. 307

GENERAL TERMS AND CONDITIONS

(Continued)

(1)Canadian Resolution Demand (or Reservation)

Surcharges shall mean the amounts which shall be

added to the demand (or reservation charges) for

firm services, as further described in Section

18.6(c) hereof.

(2)Canadian Resolution Volumetric Surcharges shall

mean the amounts which shall be added to the

rates for each unit of services, as further

described in Sections 18.6(c) and 18.6(d) hereof.

Services

(1) Applicability

This Section 18.6 is applicable to all Buyers

and Shippers served under Panhandle's Former

Tariff, to Shipper's served under Rate

Schedules FT, EFT, SCT and LFT and to those

Shippers served under Panhandle's FERC Gas

Tariff, Original Volume No. 2, as described

therein, except that it shall not apply to any

contract for service described in Section

18.6(e) hereof.

(2) Recovery of Canadian Resolution Surcharges from

Firm Services

For 65 months commencing April 1, 1993

Panhandle shall recover from Buyers and

Shippers served under:

(i)Panhandle's Rate Schedules FT, EFT and LFT

and to those Shippers served under

Panhandle's FERC Gas Tariff, Original

Volume No. 2, a Canadian Resolution Demand

(or Reservation) Surcharge of $0.39 for

each dekatherm of monthly contract billing

demand.