El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Fifth Revised Sheet No. 148B Fifth Revised Sheet No. 148B

Superseding: Fourth Revised Sheet No. 148B

RATE SCHEDULE PAL

Interruptible Parking and Lending Service

(Continued)

3. RATES AND CHARGES

3.1 Transporter, at its sole discretion, may from time to time and at

any time selectively discount any or all of the rates on the

Statement of Rates applicable to any individual Shipper pursuant

to Section 4.17 of the GT&C; provided, however, that such

discounted rates shall not exceed the applicable maximum rate(s)

nor shall they be less than the minimum rate(s) set forth on the

currently effective Statement of Rates.

3.2 Shipper shall pay to Transporter each Month the following charges

for gas parked or loaned at each PAL Point for Shipper's account

as set forth in the PALSA. Daily parked quantities and loaned

quantities on the same PALSA shall be netted for daily billing

purposes. The PALSA shall be posted on Transporter's EBB.

(a) Parking and Lending Charge: The rate per dth specified in

the executed PALSA multiplied by the total quantity of gas

parked or loaned at each PAL Point for Shipper's account for

each Day service is rendered by Transporter.

(b) Surcharges: No surcharges are applicable to PAL service

under this Rate Schedule.

3.3 Authorized overrun charges shall be assessed on a daily basis for

any nominated and confirmed quantities that exceed the PALSA's

Daily PAL Quantity. Authorized overrun charges will be assessed

at the rate listed on the Statement of Rates for overrun charges,

unless otherwise agreed to in writing by Transporter.