Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 07/01/1994, Docket: RP94-238-000, Status: Effective

Original Sheet No. 321I Original Sheet No. 321I : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

18.12 Unrecovered PGA Costs

(a) Purpose

This Section 18.12 establishes the means by which

Panhandle shall recover its Unrecovered PGA Costs

as defined below, in accordance with FERC Order

No. 636, et seq. using reservation and volumetric

surcharges

(b) Definitions

The following defines certain terms as they are

used in this Section 18.12:

(1) Unrecovered PGA Costs - Those costs which

remained in Panhandle's Account No. 191

balance on April 30, 1993, but which the

Commission has determined were applicable to

unrecovered balances which existed at

July 31, 1991 and in accordance with the

Commission's March 24, 1994 Order On

Technical Conference And Accepting Compliance

Filing in Docket Nos. RP93-172-000 and

RP93-172-001 became unrecoverable through the

provisions of Section 18.8 of these General

Terms and Conditions, including carrying

charges.

(2) Section 18.12 Recovery Period - The three

year period which shall commence on July 1,

1994 and shall terminate on June 30, 1997.

(3) Section 18.12 Reconciliation Recovery Period-

The twelve months commencing on the first day

of the month following Commission approval of

Panhandle's Reconciliation filing as provided

for in Section (e) herein.