Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 11/01/1999, Docket: RP99-506-000, Status: Effective

First Revised Sheet No. 688 First Revised Sheet No. 688 : Superseded

Superseding: 1st Rev Original Sheet No. 688

CAPACITY RELEASE (Continued)

FORM OF SERVICE AGREEMENT

ARTICLE 4 - FUEL REIMBURSEMENT

In addition to collection of the rates and charges provided for

in Article 3 (including each Addendum hereunder), Panhandle shall

retain, as Fuel Reimbursement, the percentage of the Quantities

received from Replacement Shipper hereunder, for reimbursement in

kind from Replacement Shipper for fuel usage and unaccounted-for line

loss as provided by the applicable Rate Schedule.

ARTICLE 5 - GENERAL TERMS AND CONDITIONS

This Agreement and all terms for service hereunder are subject

to the further provisions of the applicable Rate Schedule and the

General Terms and Conditions of Panhandle's Tariff, as such may 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modified, supplemented, superseded or replaced generally or as to the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

provisions of the applicable Rate Schedules and the General Terms and

Conditions, subject to the applicable provisions of the Natural Gas

Act and the Commission's Regulations thereunder. Such Rate Schedule

and General Terms and Conditions, as may be changed from time to

time, are by this reference incorporated in their entirety into this

Agreement and made an integral part hereof.

ARTICLE 6 - NOTICES

The Post Office addresses of both Panhandle and Shipper are as

follows:

PANHANDLE

Payment: Panhandle Eastern Pipe Line Company

P. O. Box 201202

Houston, Texas 77216-1202