Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 01/25/1996, Docket: RP95-397-003, Status: Effective

Substitute First Revised Sheet No. 321P Substitute First Revised Sheet No. 321P : Superseded

Superseding: Sub Original Sheet No. 321P

GENERAL TERMS AND CONDITIONS (Continued)

(f) ST Exit Fee

If at any time prior to the conclusion of

recoveries of costs pursuant to this Section

18.13, a Shipper under a firm Service Agreement

affected by this Section 18.13 requests a

modification to the Service Agreement to reduce

the MDCQ or requests a termination of the Service

Agreement and if Panhandle agrees to such

reduction or termination, then such Shipper shall

become obligated to Panhandle for payment of the

ST Exit Fee, as mutually agreed to by Panhandle

and such Shipper. Within thirty (30) days after

any such termination, Panhandle shall send an

invoice for amounts due hereunder from a Shipper

affected by this Section 18.13(f) and payment

shall be due within ten (10) days of the issuance

of such invoices. Panhandle shall include

amounts due hereunder from a Shipper with reduced

MDCQ with the Shipper's first invoice for

continuing service after the effectiveness of

such reduction. Payment of an ST Exit Fee by a

Shipper reducing its MDCQ shall not serve to

extinguish the obligation of such Shipper for ST

Reservation Surcharges applicable to the

remainder of its MDCQ. A firm Shipper which

exercises a contractual right to reduce or

terminate its contract will not be subject to an

ST Exit Fee to the extent of such reduction or

termination.

(g) Reconciliation Provisions

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

the Section 18.13 Recovery Period, Panhandle

shall reconcile its ST Costs with the actual

amounts of ST Costs recovered during such

period. The actual amounts of ST Costs

recovered through ST Reservation Surcharges

under Rate Schedule FT, EFT, SCT and LFT

shall be determined separately from the

actual amounts of ST Costs recovered through

ST Volumetric Surcharges under Rate Schedules

IT and EIT.