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First Revised Sheet No. 320 First Revised Sheet No. 320 : Superseded

Superseding: Original Sheet No. 320

GENERAL TERMS AND CONDITIONS

(Continued)

Account No. 191 amounts will be direct billed in

accordance with Section 18.8(f)(2), and refunds

of Account No. 191 amounts will be paid by

Panhandle to affected Buyers after approval by

the Commission. The filing made twelve (12)

months after the effective date of this Section

18.8 shall constitute Panhandle's final flow

through of the Prior Period Adjustment component.

(5)Carrying charges on unpaid unrecovered Account

No. 191 Direct Bill amounts for those Buyers

electing to extend their payments in accordance

with Section 18.8(f)(3) for the Prior Period

component shall be calculated using the methods

specified in Section 154.501(d) of the

Commission's Regulations.

(6)The issuance by Panhandle of direct bills or the

payment by Panhandle of refunds pursuant to this

Section 18.8 is subject to prior filing for

approval of the Federal Energy Regulatory

Commission.

(g) Reservations

This Section 18.8 shall not be construed to affect

Panhandle's right to recover from Buyer such

transition or other costs as it may incur in

connection with contracts with suppliers of natural

gas or otherwise, such rights being expressly

reserved, subject to applicable Commission orders and

regulations. Panhandle reserves the right to

reallocate the charges for which provision is made

hereunder, in the event these charges shall be

determined to be ineffective.