Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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

First Revised Sheet No. 321F First Revised Sheet No. 321F : Superseded

Superseding: Original Sheet No. 321F

GENERAL TERMS AND CONDITIONS

(Continued)

18.11 Dakota Gasification Transition Cost Surcharge

(a) Applicability

This Section 18.11 establishes the mechanism for the

recovery by Panhandle of certain costs which are

applicable to services provided to Panhandle by ANR

Pipeline Company (ANR), under ANR's Rate Schedule

FTS-1. To recover these Transition Costs, Panhandle

shall be entitled to surcharge Shippers utilizing its

Market Area Storage Facilities under Rate Schedules

WS, PS, FS and IWS to flow through all Dakota

Gasification Costs that Panhandle is required to pay

to ANR.

(b) Definition

As used in this Section 18.11, Dakota Gasification

Transition Costs are those capacity and supply costs

associated with ANR's obligations to Dakota

Gasification Company which the Commission has

permitted ANR to recover from Panhandle pursuant to

Section 28.1(c) of ANR's FERC Gas Tariff, Second

Revised Volume No. 1, or successor tariff.

(c) Filings

(1) The effective date of each Dakota Gasification

Transition Cost Surcharge shall be June 1,

September 1, December 1 and March 1.

(2) Prior to the effective date of each Dakota

Gasification Transition Cost Surcharge, Panhandle

shall file with the Commission and post, as

defined in Section 154.2(d) of the Commission's

Regulations, a statement of the effective Dakota

Gasification Transition Cost Surcharge as

determined in accordance with this Section 18.11.

In each filing, Panhandle shall include

workpapers detailing the basis used to determine

the amount of the surcharge. In the event any

such change is precluded by law from going into

effect on such date, it shall be made effective

as soon thereafter as permitted by law.