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

Seventh Revised Sheet No. 126 Seventh Revised Sheet No. 126

Superseding: Sixth Revised Sheet No. 126

RATE SCHEDULE FTH-V

Small Shipper Firm Hourly Transportation Service - Virtual Area

(Continued)

7. CHARGES (Continued)

7.2 (b) Daily Unauthorized Overrun Transportation

(i) A Shipper shall pay a daily unauthorized overrun penalty

for each Day in which gas quantities physically taken at

all Delivery Points, as allocated to Shipper at such

points pursuant to Section 10.5 of the GT&C, exceed the

Shipper's TCD, as specified in the Executed TSA, plus

any authorized overrun quantities. For purposes of

calculating the daily unauthorized overrun penalty, such

excess quantities shall be deemed to be the daily

unauthorized overrun quantity. Authorized overrun

quantities are not included in the calculation of an

unauthorized overrun penalty.

(ii) 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 7.2(b)(iii) 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.

(iii) 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.