El Paso Natural Gas Company

Second Revised Volume No. 1A

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Effective Date: 04/01/2010, Docket: RP10-454-001, Status: Effective

Fifth Revised Sheet No. 106 Fifth Revised Sheet No. 106

Superseding: Fourth Revised Sheet No. 106

RATE SCHEDULE FT-1

Firm Transportation Service

(Continued)

5. CHARGES (Continued)

5.2(b) Daily Unauthorized Overrun Transportation (Continued)

(ii) For a Shipper with multiple TSAs (inclusive of TSAs

under other rate schedules, if applicable), for purposes

of determining a Shipper's daily unauthorized overrun

penalties, allocated gas quantities and, separately,

contract entitlements will be aggregated. Shipper

aggregated gas quantities are accounted for as if

service was under a single TSA, including the

computation of the daily Safe Harbor Tolerance

Quantities.

A. In the event Shipper is subject to a daily

unauthorized overrun penalty and has executed TSAs

pursuant to various rate schedules, such daily

unauthorized overrun penalty shall be assessed by

multiplying the daily unauthorized overrun quantity

by the highest rate for the applicable zone of

delivery under all rate schedules for which service

was provided to Shipper on that Day, subject to

Footnote 7 of the Statement of Rates.

(iii) The daily unauthorized overrun penalty (non-Critical or

Critical, as applicable) shall be assessed based on the

application of Safe Harbor Tolerance Quantities as

described in Section 5.2(b)(iv) of this rate schedule.

Shipper shall pay an amount obtained by multiplying the

daily unauthorized overrun penalty quantity (less the

Safe Harbor Tolerance Quantities) by the daily

unauthorized overrun rate set forth on the Statement of

Rates, except as provided in Section 5.2(b)(ii) of this

rate schedule.

(iv) In non-Critical Conditions, a Shipper is given the

benefit of a daily Safe Harbor Tolerance Quantity equal

to the greater of 7% of its TCD or 2,000 dth per Day.

In Critical Conditions, a Shipper is given the benefit

of daily Safe Harbor Tolerance Quantities as determined

and applied pursuant to Section 11.1(a)(viii) and

11.1(i) of the GT&C. Should the daily unauthorized

overrun quantity exceed the applicable Safe Harbor

Tolerance Quantities, only those quantities taken in

excess of such tolerances shall be subject to the daily

unauthorized overrun penalty (Critical or non-Critical,

as applicable). Should Shipper's overrun quantities not

exceed the daily Safe Harbor Tolerance Quantities, such

overrun quantities shall be assessed the daily

authorized overrun rate in recognition of service

rendered.