Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 01/25/1996, Docket: RP95-397-000, Status: Effective

First Revised Sheet No. 321K First Revised Sheet No. 321K : Superseded

Superseding: Original Sheet No. 321K

GENERAL TERMS AND CONDITIONS

(Continued)

(d) Filing Procedures For Unrecovered PGA Costs

The Reservation Surcharge during the Section

18.12 Recovery Period shall be designed to

recover ninety percent of the Unrecovered PGA

Costs over three years using the applicable firm

service design determinants underlying

Panhandle's then effective rates for service

under Rate Schedules FT, EFT, SCT and LFT.

The Volumetric Surcharge during the Section 18.12

Recovery Period shall be designed to recover ten

percent of the Unrecovered PGA Costs over three

years using the applicable interruptible service

design determinants underlying Panhandle's then

effective rates for service under Rate Schedules

IT and EIT.

(e) Reconciliation

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

the Section 18.12 Recovery Period, Panhandle

shall reconcile its Unrecovered PGA Costs

with the actual amounts of Unrecovered PGA

Costs recovered during such period. The

actual amounts of Unrecovered PGA costs

recovered through Reservation Surcharges

under Rate Schedules FT, EFT, SCT and LFT

shall be determined separately from the

actual amounts of Unrecovered PGA Costs

recovered through interruptible

transportation rates under Rate Schedules IT

and EIT.