El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Seventh Revised Sheet No. 125 Seventh Revised Sheet No. 125

Superseding: Sixth Revised Sheet No. 125

RATE SCHEDULE FTH-V

Small Shipper Firm Hourly Transportation Service - Virtual Area

(Continued)

5. RATE (Continued)

5.2 Transportation Charges: Shipper shall pay to Transporter each Month

the charges set forth below under the Executed FTHV TSA.

(a) Mainline Reservation Charges: Shipper shall pay the

applicable Reservation Charges, which shall be determined by

multiplying Shipper's TCD by the reservation rate specified in

the FTHV TSA. The Reservation Charges payable under this Rate

Schedule will include all applicable reservation surcharges,

unless otherwise provided in the FTHV TSA.

(b) Usage Charge: Shipper shall pay the maximum rate per dth

applicable to the Permian virtual area zone in which

deliveries are made as set forth from time to time on the

applicable Statement of Rates. The usage charges payable

under this Rate Schedule will include all applicable usage

surcharges, unless otherwise provided in the FTHV TSA.

5.3 Incremental Facility Charge. When the construction of new minor

facilities is required in order to provide service to Shipper,

Shipper shall pay Transporter for such facilities including any

related taxes. The Parties shall agree as to whether Shipper shall:

1) make a one-time 100 percent reimbursement for the cost of

facilities or 2) pay the cost of facilities through installment

payments over a period of time. If the Parties agree that Shipper

shall pay Transporter for the facilities via installments, the

facility charge shall include the cost of the facilities plus any

related taxes, plus interest as agreed to by the Parties. If a

contribution in aid of construction ("CIAC") is paid by the Shipper

in accordance with a construction of facilities agreement and such

transaction is determined to be taxable, the CIAC (where a Shipper

agrees to pay for all or part of the facilities) shall be increased

by an amount to compensate for the corporate income tax effects

thereof.

6. RESERVATION CHARGE CREDIT

Transporter shall provide reservation charge credits to a Rate

Schedule FTH-V Shipper when Transporter is unable to schedule such

Shipper's nominated and confirmed quantities on a daily basis pursuant to

Section 16 of the GT&C, subject to the conditions of this Rate Schedule.