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

Second Revised Sheet No. 589 Second Revised Sheet No. 589 : Superseded

Superseding: Sub First Revised Sheet No. 589






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 IIOS 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 stored (i.e.,

that the rates shall be adjusted in a specified relationship to the

actual Stored Quantity); 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 Shipper.






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 interruptible storage service for

Shipper pursuant to this Agreement from _____________ until

________________, when the term of this Agreement shall expire.