Panhandle Eastern Pipe Line Company, LP


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Effective Date: 06/30/2004, Docket: RP04-321-000, Status: Effective

Original Sheet No. 502 Original Sheet No. 502 : Effective








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 FT filed with the Commission,

as such rates and charges and Rate Schedule FT 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modified, supplemented, superseded, or replaced generally or as to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 FT 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 FT 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; (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); or (g) based on published index

prices for specific receipt or delivery points or other agreed upon

pricing reference points for price determination (Such discounted

rate may be based on the published index price point differential or

arrived at by formula. Any service agreement containing an index

based discount will identify what rate component is discounted. To

the extent the firm reservation charge is discounted, the index price

differential rate formula shall be calculated to state a rate per

unit of MDCQ.); 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