Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 07/10/2000, Docket: RP00-162-000, Status: Effective

Fourth Revised Sheet No. 311 Fourth Revised Sheet No. 311 : Superseded

Superseding: Third Revised Sheet No. 311

GENERAL TERMS AND CONDITIONS

(Continued)

(c) Mechanisms for Recovery of GSR Costs

Ninety (90) percent of Panhandle's GSR Costs,

including carrying charges, shall be recovered by

means of a GSR Reservation Surcharge applicable to

service under Rate Schedules FT, EFT, SCT, LFT

and HFT. The GSR Reservation Surcharge applicable to

service under Rate Schedule SCT shall be converted to

a Volumetric Surcharge at a 52.5% load factor rate.

The GSR Reservation Surcharge shall be stated on

effective Tariff Sheet Nos. 4, 5, 6, 15 and 17 of

Panhandle's FERC Gas Tariff First Revised Volume No.

1, as the same may change from time to time, and

shall become a part of the stated rates for services

provided under such Rate Schedules.

Ten (10) percent of Panhandle's GSR Costs, including

carrying charges, shall be recovered through the

rates applicable to interruptible service under Rate

Schedules IT and EIT as the same may change from time

to time, and shall become part of the stated rates

for services provided under such Rate Schedules.

Carrying Charges shall be calculated in accordance

with Section 154.501(d) of the Commission's

Regulations.

The provisions of this Section 18.7 shall be fully

applicable to successor, replacement and new rate

schedules.

(d) Filing Procedure For Initial GSR Cost Collection

Period

(1)Panhandle may make one or more rate filings to

recover GSR Costs from Shippers served under

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

and HFT. An Initial GSR Cost Collection Period

shall apply to each rate filing Panhandle makes

to recover GSR Costs.