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

Fourth Revised Sheet No. 283 Fourth Revised Sheet No. 283 : Superseded

Superseding: Third Revised Sheet No. 283





15.7 Rights and Obligations of the Replacement Shipper


(a) A Replacement Shipper shall have all the rights and

obligations specified under the applicable Rate

Schedule, Service Agreement, and General Terms and

Conditions, including the right to reserve primary

point capacity up to its contract demand, subject to

available capacity, unless the conditions prescribed

for the assignment require otherwise.


(b) When the Capacity Release Service Agreement Addendum

is issued, a Replacement Shipper may submit

nominations pursuant to Section 8 of these General

Terms and Conditions for the next available

nomination cycle and any nomination cycle thereafter

for which the Addendum to the Capacity Release

Service Agreement is effective.


(c) The Replacement Shipper will be responsible for any

imbalance between receipts of Gas and deliveries of

Gas, and for all costs and all rates, charges,

penalties and fees for Transportation or Storage

service provided under the Capacity Release Service



(d) Commodity charges and volumetric surcharges which are

applicable under Panhandle's Tariff to Quantities of

Gas actually transported shall be a separately stated

charge on the Replacement Shipper's Monthly Bill and

shall be at the Maximum Rate contained on the

currently effective Tariff sheet unless Panhandle

agrees to a lesser rate.


15.8 Marketing Fee


The Releasing Shipper and Panhandle may agree that, in

return for Panhandle actively marketing the Releasing

Shipper's Service Agreement, Panhandle will reduce the

Releasing Shipper's invoice credit by a negotiated

marketing fee.