El Paso Natural Gas Company

Second Revised Volume No. 1A

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

First Revised Sheet No. 123 First Revised Sheet No. 123

RATE SCHEDULE FTH-V

Small Shipper Firm Hourly Transportation Service - Virtual Area

(Continued)

3. CONDITIONS OF SERVICE (Continued)

3.2 Pursuant to Section 8.1(f) of the GT&C, a Shipper that re-designates

a primary delivery point to another PSVP will retain defined hourly

delivery service parameters at such point if service to the re-

designated point is Operationally Equivalent to service at the

original point, is within the Permian virtual area, and is listed on

the EBB as a PSVP available location.

3.3 Release of FTH-V Capacity

(a) The Acquiring Shipper will retain hourly service rights, as

defined in the Releasing Shipper's FTHV TSA, at the primary

delivery points released by the Releasing Shipper. The

Acquiring Shipper may nominate to alternate delivery points on

a secondary basis subject to the provisions of Section 3.1 of

this Rate Schedule.

(b) An Acquiring Shipper who re-designates a primary delivery point

to another PSVP will retain hourly service rights at such point

if service to the re-designated point is Operationally

Equivalent to service at the primary point, is within the

Permian virtual area, and is listed on the EBB as a PSVP

available location.

3.4 Flow day diversions, pursuant to Section 6.5 of the GT&C, are

available to Rate Schedule FTH-V Shippers.

3.5 From time to time, Transporter may request Shipper, upon mutual

consent, to go out-of-daily balance and/or to take hourly gas

quantities in a manner different from its Hourly Scheduled

Entitlement or different from its Hourly Contract Entitlement. Any

such action will not result in daily unauthorized overrun penalties,

hourly scheduling penalties, or Critical Condition charges pursuant

to this rate schedule. Furthermore, Shipper may offer in writing to

assist Transporter in system loading needs. Transporter will process

such offers in a reasonable and orderly fashion as time permits given

the Critical Conditions. Transporter may accept or reject such offer

in writing using its best operational judgment. If Transporter

accepts such offer, Shipper's actions in helping system loading needs

will not result in daily unauthorized overrun penalties, hourly

scheduling penalties, or Critical Condition charges pursuant to this

rate schedule. However, if Shipper takes any actions without first

obtaining the written agreement of Transporter, Shipper will be

subject to all applicable penalties and charges.