Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 02/01/2002, Docket: RP00-395-003, Status: Effective

Original Sheet No. 338B Original Sheet No. 338B : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

27.5 After the effective date of this Tariff, Panhandle may

from time to time sell Gas as required by Section 3 of

Rate Schedule PS, Sections 12.11 and 12.13(b) of the

General Terms and Conditions, or to dispose of excess

Storage inventory. The point of sale for all such sales

shall be as specified in this Section 27.5:

(a) The IOS Point for sales of excess storage inventory,

for sales pursuant to Section 3 of Rate Schedule PS and

sales pursuant to Section 12.11 of these General Terms

and Conditions, if the imbalance is associated with

service under Rate Schedules FT, EFT, SCT, GDS, IT,

EIT, LFT or HFT;

(b) The Point of Delivery for sales of unauthorized

deliveries pursuant to Section 12.13(b) of these

General Terms and Conditions.