Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 01/15/2000, Docket: RP00-137-000, Status: Effective

Third Revised Sheet No. 564 Third Revised Sheet No. 564 : Superseded

Superseding: Sub Second Revised Sheet No. 564

RATE SCHEDULE EIT (Continued)

ENHANCED INTERRUPTIBLE TRANSPORTATION SERVICE

FORM OF TRANSPORTATION AGREEMENT

ARTICLE 3 - RATES AND CHARGES

For the services provided or contracted for hereunder, Shipper

agrees to pay Panhandle the then-effective, applicable rates and

charges under Panhandle's Rate Schedule EIT filed with the

Commission, as such rates and charges and Rate Schedule EIT may

hereafter be modified, supplemented, superseded, or replaced

generally or as to the service hereunder. Panhandle reserves the

right from time to time to unilaterally file and to make effective

any such changes in the terms or rate levels under Rate Schedule EIT

and the applicability thereof, the General Terms and Conditions or

any other provisions of Panhandle's Tariff, subject to the applicable

provisions of the Natural Gas Act and the Commission's Regulations

thereunder.

From time to time Panhandle and Shipper may agree in writing,

on a level of discount of the otherwise applicable rates and charges

hereunder, pursuant to the effective applicable provisions of Rate

Schedule EIT and subject to the Regulations and Orders of the

Commission. For example, Panhandle and Shipper may agree that a

specified discounted rate shall apply: (a) only to certain

Quantities under this Agreement; (b) only if specified Quantity

levels are actually achieved or only with respect to Quantities below

a specified level; (c) only during specified time periods; (d) only

to specified Points of Receipt, Points of Delivery, mainline

segments, transportation paths or defined geographical areas; (e)

only to production reserves committed by the Shipper; or (f) in a

specified relationship to the Quantities actually transported (i.e.,

that the rates shall be adjusted in a specified relationship to

Quantities actually transported); provided, however, that any such

discounted rate set forth above shall be between the Maximum Rate and

Minimum Rate applicable to the service provided under this Agreement.

In addition, the discount agreement may include a provision that if

one rate component which was at or below the applicable Maximum Rate

at the time the discount agreement was executed subsequently exceeds

the applicable Maximum Rate due to a change in Panhandle's Maximum

Rates so that such rate component must be adjusted downward to equal

the new applicable Maximum Rate, then other rate components may be

adjusted upward to achieve the agreed overall rate, so long as none

of the resulting rate components exceed the Maximum Rate applicable

to that rate component. Such changes to rate components shall be

applied prospectively, commencing with the date a Commission order

accepts revised tariff sheets. However, nothing contained herein

shall be construed to alter a refund obligation under applicable law

for any period during which rates which had been charged under a

discount agreement exceeded rates which ultimately are found to be

just and reasonable. Any discount(s) shall be effective only on a

prospective basis and as specified in the written agreement between

Panhandle and Shipper.