Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 05/25/1996, Docket: RP96-214-000, Status: Effective

First Revised Sheet No. 313 First Revised Sheet No. 313 : Superseded

Superseding: Substitute Original Sheet No. 313

GENERAL TERMS AND CONDITIONS

(Continued)

then-effective rates. The adjustment to rates

for interruptible service shall be based on one-

third (1/3) of the applicable GSR Costs. Such

GSR Costs shall include carrying costs for the

Initial GSR Cost Collection Period.

(e) GSR Exit Fee

If at any time prior to the conclusion of the Initial

GSR Cost Collection Period or any Carryover GSR Cost

Collection Period, a Shipper under a firm Service

Agreement affected by this Section 18.7 requests a

modification to the Service Agreement to reduce the

MDCQ or requests a termination of the Service

Agreement and if Panhandle agrees to such reduction

or termination, then the affected Shipper shall

immediately become obligated to Panhandle for the GSR

Exit Fee. The GSR Exit Fee shall equal the amount

which would have been collected during the remainder

of the Initial or the Carryover Cost Collection

Period, as applicable, of this Section 18.7 at the

level of firm service applicable to such Shipper at

the effective date hereof, or the effective date of

the Service Agreement whichever is later. Panhandle

will invoice such amount to the affected Shipper in a

direct bill within thirty (30) days after the

termination or reduction in firm service rights.

Invoices pursuant to this Section 18.7(e), including

carrying charges calculated in accordance with

Section 154.501(d) of the Commission's Regulations

shall be due and payable within ten (10) days of the

issuance of such invoices.

(f) Reconciliation

(1)Within ninety (90) days of the conclusion of a

GSR Cost Collection Period, Panhandle shall file

a limited rate filing under Section 4 of the

Natural Gas Act to reconcile its GSR Costs with

the actual amounts of GSR Costs recovered during

such period. The actual amounts of GSR costs

recovered through GSR Reservation Surcharges