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

Fifth Revised Sheet No. 578 Fifth Revised Sheet No. 578 : Superseded

Superseding: Sub Fourth Revised Sheet No. 578






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 IOS 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; or (d) in

a specified relationship to the Quantities actually injected,

withdrawn or stored (i.e., that the rates shall be adjusted in a

specified relationship to Quantities actually injected, withdrawn or

stored); 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



From time to time Panhandle and Shipper may agree to a

Negotiated Rate for a specified term for service hereunder.

Provisions governing such Negotiated Rate and term shall be set forth

on Exhibit A hereto.





3.1 All volumes delivered to Shipper hereunder shall be

delivered at the IOS Point, as described in Rate Schedule IOS.





4.1 This Agreement shall be effective from the date first

stated above. Panhandle shall provide firm storage service for

Shipper pursuant to this Agreement from _____________ until

________________, when the term of this Agreement shall expire.