El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Third Revised Sheet No. 121 Third Revised Sheet No. 121

Superseding: Substitute Second Revised Sheet No. 121

RATE SCHEDULE FTH-V

Small Shipper Firm Hourly Transportation Service - Virtual Area

(Continued)

2. APPLICABILITY AND CHARACTER OF SERVICE (Continued)

2.5 Grandfathered Sculpted Monthly Maximum Delivery Quantities and

Conversion Rights. If a Shipper, as of December 31, 2008, has

varying monthly MDQ rights under Rate Schedule FT-1 service and

elects to convert part or all of that service to FTH-V service,

Shipper may move such sculpted monthly MDQ rights to its Rate

Schedule FTH-V contract.

2.6 Hourly transportation service under this Rate Schedule FTH-V shall

be based on a three-hour enhanced peaking right, subject to the

limitation that gas quantities taken at an applicable Delivery Point

may not exceed the daily scheduled quantity at such point. On any

Gas Day, Shipper may take gas quantities at such point at a rate

equivalent to:

(a) up to 150% of 1/24th of the daily scheduled quantity at such

point for up to five hours in the Gas Day subject to the limit

that no more than three such hours may be consecutive hours in

the Gas Day; however, no one hour in the Gas Day may exceed

150% of 1/24th of the daily scheduled quantity; and

(b) up to an average of 130% of 1/24th of the daily scheduled

quantity at such point for up to nine hours in the Gas Day

subject to the limit that no more than six such hours may be

consecutive hours in the Gas Day; however, no one hour in this

period may exceed 150% of 1/24th of the daily scheduled

quantity; and

quantity at such point for any twelve consecutive hours;

however, no one hour in this period may exceed 150% of 1/24th

of the daily scheduled quantity.

(d) Hourly quantities in excess of any one of the Section 2.6(a)

through Section 2.6(c) criterion will be Hourly Scheduling

Penalty Quantities pursuant to Section 14.1 of the GT&C.

2.7 To calculate the actual measured hourly rate of flow, should the

delivery meter be part of an aggregation of meters under a D-Code,

some or all of which have physical gas measurement equipment

compatible with Transporter's system and capable of registering

hourly flows, the quantities delivered to any such individual meters

in the D-Code shall be deemed to have flowed on a ratable 1/24th

basis if: 1) hourly measurement equipment is not installed or 2) the

hourly measurement equipment does not have active telemetry

capability (temporary outages excepted) into the VISA system on a

real time basis.