Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 10/18/1999, Docket: RP99-482-000, Status: Effective

Sixth Revised Sheet No. 101 Sixth Revised Sheet No. 101 : Superseded

Superseding: Fifth Revised Sheet No. 101





Shippers paying a Negotiated Rate which exceeds the

Maximum Rate will be considered to be paying the Maximum

Rate for purposes of scheduling, curtailment and

interruption, and calculating the economic value of a

request for unsubscribed firm capacity. In addition,

a Shipper that does not agree to pay any surcharges will

not be granted a scheduling preference that deems such

surcharges have been paid. Replacement Shippers may not

bid or pay a rate greater than the Maximum Rate and are

not eligible for Negotiated Rates.


In the event that capacity subject to a Negotiated Rate

which is based on a rate design other than straight fixed

variable is released, Shipper and Panhandle may agree on

billing adjustments to the Releasing Shipper that may vary

from or are in addition to those set forth in Section 15.6

of the General Terms and Conditions in order to establish

the basis of accounting for revenues from a Replacement

Shipper as a means of preserving the economic bases of

the Negotiated Rate. Such payment obligation and

crediting mechanism for capacity release shall be set

forth on Exhibit C of the executed Service Agreement.

Nothing in this Section 3.11 shall authorize Panhandle or

Shipper to negotiate terms and conditions of service.




The Monthly Bill for service under this Rate Schedule shall be

equal to the Transmission Charge, the Gathering Charge, any

applicable overrun and balancing charges, plus all applicable





Shipper shall deliver or cause to be delivered Natural Gas for

the account of Shipper on a uniform hourly basis as nearly as

practicable. At each Point(s) of Delivery Shipper may receive from

Panhandle in any hour such Quantities of Gas as it requires or as are

consistent with available pipeline pressures at such point(s);

provided that Panhandle shall be entitled to require Shipper to

restrict takes at any point during any hour to one-sixteenth of the

Natural Gas nominated for Transportation to that Point(s) of Delivery

on that Day by notifying Shipper through the Messengerþ system, the

Web Site and by telephone or facsimile communication.