PANHANDLE EASTERN PIPE LINE COMPANY

DESCRIPTION OF SERVICES

Rate Schedule FT
 
Rate Schedule FT is a firm transportation service, which requires uniform hourly deliveries. Rate Schedule FT shippers are afforded unlimited primary points of receipt and points of delivery with contract quantities allocated among the primary points. Rate Schedule FT shippers are also entitled to use all other points of receipt and points of delivery on Panhandle's Master Receipt Point List and Market Area Delivery Point List (with flow control), up to the capacity which has been reserved in a particular zone, as secondary firm points of receipt and points of delivery. Daily scheduling and monthly balancing provisions apply to Rate Schedule FT service.
 
Rate Schedule EFT
 
Rate Schedule EFT is an enhanced firm transportation service which allows firm shippers to take at any point of delivery, during any hour, up to 1/16th of the uniform hourly quantities scheduled for delivery without incurring a scheduling penalty, provided the total delivered volume remains within the tolerance level for the gas day. Rate Schedule EFT shippers are afforded unlimited primary points of receipt and points of delivery with contract quantities allocated among the primary points. Rate Schedule EFT shippers may utilize all other points of receipt and points of delivery on Panhandle’s Master Receipt Point List and Market Area Delivery Point List as secondary firm points of receipt and delivery up to the capacity which has been reserved in a particular zone. Daily scheduling and monthly balancing provisions apply to Rate Schedule EFT service.
 
Rate Schedule SCT
 
Rate Schedule SCT is a firm small customer transportation service for customers where Panhandle is the customer's only pipeline connection. Since the service is primarily designed for small municipalities, the MDQ may not exceed 10,000 Dth per day. Rate Schedule SCT shippers may have unlimited primary points of receipt with contract quantities allocated among primary points. Points of delivery are restricted to points where Panhandle is the sole pipeline connection to that service area. Additionally, all points on the Master Receipt Pooling Point List may be utilized as secondary firm points of receipt up to the capacity which has been reserved in a particular zone. Moreover, Rate Schedule SCT shippers are prohibited from using interruptible transportation or released capacity until they have used their MDQ, which may not exceed 10,000 Dth per day. Rate Schedule SCT shippers are subject to daily scheduling and monthly balancing provisions.
 
Rate Schedule LFT
 
Rate Schedule LFT is a limited firm transportation service, which allows Panhandle at its sole discretion to not schedule service for any 10 days within the month. Rate Schedule LFT shippers can take at any point of delivery, during any hour, between 50 and 150 percent of the uniform hourly quantities scheduled for delivery without incurring a scheduling penalty, provided the total delivered volume remains within the tolerance level for the gas day. Rate Schedule LFT shippers are afforded unlimited primary points of receipt and points of delivery with contract quantities allocated among the primary points. Rate Schedule LFT shippers may utilize all other points of receipt and points of delivery on Panhandle's Master Receipt Point List and Market Area Delivery Point List as secondary firm points of receipt and delivery up to the capacity which has been reserved in a particular zone. Daily scheduling and monthly balancing provisions apply to Rate Schedule LFT service.
 
Rate Schedule HFT
 
Rate Schedule HFT is an hourly firm transportation service, which accommodates shippers with the need for accelerated flow rates on relatively short notice for a limited number of hours within the gas day. Under Rate Schedule HFT, a shipper may elect to receive its entire Maximum Daily Quantity (MDQ) over a specified hourly period within the gas day. The hourly delivery quantity is calculated as the MDQ divided by the specified hourly delivery period set out in the service agreement. The new service can only be provided at primary points of delivery directly connected to Panhandle's system and which have EGM and flow control equipment. HFT shippers may use secondary points of receipt and otherwise qualified points of delivery on Panhandle's system (delivery points with EGM, flow control and no other service agreement) as secondary points of delivery. HFT will be nominated and scheduled on a daily basis. In addition, Panhandle requires notification to its Gas Control Department by telephone three hours before the time of startup for delivery of gas. Daily scheduling and monthly balancing provisions apply to Rate Schedule HFT service.
 
Rate Schedule IT
 
Rate Schedule IT is an interruptible transportation service, which requires uniform hourly receipts and deliveries. Rate Schedule IT shippers may use Panhandle's Flow Control Master Receipt Point List and Flow Control Market Area Delivery Point List. Rate Schedule IT shippers are subject to daily scheduling and monthly balancing provisions.
 
Rate Schedule EIT
 
Rate Schedule EIT is an enhanced interruptible transportation service which allows shippers to take at any point of delivery during any hour between 50 and 150 percent of the uniform hourly quantities scheduled for delivery without incurring a scheduling penalty. Rate Schedule EIT shippers may use Panhandle's Master Receipt Point List and Market Area Delivery Point List. Rate Schedule EIT shippers are subject to daily scheduling and monthly balancing provisions.
 
Rate Schedule WS
 
Rate Schedule WS is a firm winter storage service allowing for firm injections in the Summer period and firm withdrawals in the Winter period. Winter period injections and summer period withdrawals are permitted on an interruptible basis. Maximum Daily Withdrawal Quantity (MDWQ) is 1/100th of Maximum Stored Quantity (MSQ) and the Maximum Daily Injection Quantity (MDIQ) is 1/200th of the MSQ. A customer's available MDWQ is reduced as the available MSQ is reduced at a set percentage. In addition, a customer may transfer (by sale or otherwise) all or a portion of its stored volume to any shipper that receives storage service in the same zone.
 
Rate Schedule IOS
 
Rate Schedule IOS is a firm in/out storage service provided in Panhandle's Field Zone which allows for firm injections and withdrawals on a year round basis. Maximum Daily Withdrawal Quantity (MDWQ) is 1/100th of Maximum Stored Quantity (MSQ) and the Maximum Daily Injection Quantity (MDIQ) is 1/200th of the MSQ. In addition, a customer may transfer (by sale or otherwise) all or a portion of its stored volume to any shipper that receives storage service in the same zone.
 
Rate Schedule PS
 
Rate schedule PS is a firm peaking storage service provided in Panhandle's Market Zone, which allows for firm injections in the Summer period and firm withdrawals in the Winter period. Winter period injections and summer period withdrawals are permitted on an interruptible basis. Maximum Daily Withdrawal Quantity (MDWQ) is 1/71st of Maximum Stored Quantity (MSQ) and the Maximum Daily Injection Quantity (MDIQ) is 1/200th of the MSQ. A customer's available MDWQ is reduced as the available MSQ is reduced at a set percentage. In addition, a customer may transfer (by sale or otherwise) all or a portion of its stored volume to any shipper that receives storage service in the same zone.
 
Rate Schedule FS
 
Rate Schedule FS is a firm flexible storage service provided in Panhandle's Field or Market Zone that allows for customized firm injection and withdrawal rights subject to Panhandle's approval. A shipper can customize firm injection and withdrawal quantities, and firm injection and withdrawal periods. In addition, a customer's reduction in available MDWQ in relation to MSQ can also be customized. A customer may transfer (by sale or otherwise) all or a portion of its stored volume to any shipper that receives storage service in the same zone.
 
Rate Schedule IIOS
 
Rate schedule IIOS is an interruptible in/out storage service provided in Panhandle's Field Zone. Injections and withdrawals are allowed on an interruptible basis year round. Maximum Daily Withdrawal Quantity (MDWQ) is 1/100th of Maximum Stored Quantity (MSQ) and the Maximum Daily Injection Quantity (MDIQ) is 1/200th of the MSQ. A shipper may be required, upon notification, to withdraw all, or any part, of its stored volume as rapidly as is consistent with the MDWQ, so long as the withdrawal has been completed within thirty days of Panhandle's notice. A shipper may transfer (by sale or otherwise) all or a portion of its stored volume to any shipper that received storage service in the same zone.
 
Rate Schedule IWS
 
Rate Schedule IWS is an interruptible winter storage service provided in Panhandle's Field Zone and Market Zone allowing for interruptible injections in the Summer period and interruptible withdrawals in the Winter period. Maximum Daily Withdrawal Quantity (MDWQ) is 1/100th of Maximum Stored Quantity (MSQ) and the Maximum Daily Injection Quantity (MDIQ) is 1/200th of the MSQ. A customer's available MDWQ is reduced as the available MSQ is reduced at a set percentage. A shipper may be required, upon notification, to withdraw all, or any part, of its stored volume as rapidly as is consistent with the shipper's MDWQ, so long as the withdrawal has been completed within thirty days of Panhandle's notice. A shipper may transfer (by sale or otherwise) all or a portion of its stored volume to any shipper that receives storage service in the same zone.
 
Rate Schedule GDS
 
Rate Schedule GDS is a firm general delivery managed no-notice service. Under Rate Schedule GDS, Panhandle will manage a shipper's firm transportation and storage agreements to match shipper needs. Service is limited to one point of delivery. A shipper may increase, up to its MDQ, or decrease deliveries on any gas day without nominating such increase or decrease and without incurring daily scheduling penalties.
 
Rate Schedule TBS
 
Rate Schedule TBS is a managed transportation balancing service. Under Rate Schedule TBS, Panhandle will manage an IOS storage agreement to balance the shipper's transportation receipts and deliveries on selected transportation agreements on a daily basis up to the available IOS storage capacity. The transportation agreements covered by the TBS service can be changed prior to each month.
 
Rate Schedule GPS
 
Rate Schedule GPS is an interruptible gas parking and lending service. Under the service, a customer can park or borrow gas at any point of receipt or delivery on Panhandle's system. All service provided under Rate Schedule GPS is subject to Panhandle's approval and subject to Panhandle's system operations. Service is intended to meet short-term needs (period less than 31 days). Failure to remove gas parked from Panhandle's system or repay gas loaned by Panhandle when notified by Panhandle will result in substantial penalties.