Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

Second Revised Sheet No. 318 Second Revised Sheet No. 318 : Superseded

Superseding: First Revised Sheet No. 318

GENERAL TERMS AND CONDITIONS

(Continued)

Component shall be limited to a nine month period

which shall commence on the date this Tariff

becomes effective, except to the extent Panhandle

receives refunds of amounts previously charged to

Account No. 191 for which there will be no such

time limitation.

(2)Buyer's proportionate share of prior period

commodity charges or refunds shall be determined

by multiplying, for each prior period adjustment,

the total commodity portion of such adjustment by

a fraction which shall be determined in Section

18.8(d)(2).

(3)Buyer's proportionate share of prior period

demand charges shall be determined by

multiplying, for each such prior period

adjustment, the total demand portion of such

adjustment by a fraction which shall be

determined in Section 18.8(d)(3).

(4)Carrying charges on all such amounts shall be

calculated using the methods specified in Section

154.501(d) of the Commission's Regulations.

(f) Nature of Obligations

(1)The entire amount of Buyer's obligation to

Panhandle as described in this Section 18.8,

including its subsections, shall be deemed to be

due on the day prior to the date this Section

becomes effective.

(2)Panhandle shall invoice the Buyer for the Direct

Bill component hereunder on or after the tenth

day of the month following the Commission's

approval of Panhandle's disposition of Account

No. 191 amounts. The entire amount of each

Buyer's unrecovered Account No. 191 Direct Bill

Amount shall be payable ten (10) days thereafter.