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

Ninth Revised Sheet No. 217 Ninth Revised Sheet No. 217

Superseding: Eighth Revised Sheet No. 217

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

4. REQUESTS FOR SERVICES

4.2 Prospective Sale of Available Capacity (Continued)

(c) If Transporter sells firm capacity pursuant to Section

4.2(b)(i), capacity will be made available to other shippers

on an interim basis up to the commencement date of the

prospective TSA. Where the requested start date of the

prospective capacity extends more than one Year into the

future, the interim capacity would otherwise be eligible for

the right-of-first-refusal ("ROFR") if it is acquired at the

maximum applicable tariff rate. Transporter will limit the

ROFR rights of such interim capacity using the following

procedures for the sale of prospective and interim capacity.

(i) A pre-arranged transaction for any such prospective

capacity shall be posted for competitive bidding

pursuant to the requirements of Sections 4.4 and 4.5.

(ii) The bid evaluation methodology for the award of such

capacity will be Net Present Value as defined in

Section 9.9(b)(iii).

(iii)If, after the award of the prospective capacity,

Transporter sells any related interim capacity that

would otherwise be eligible for ROFR rights, the

interim capacity will be posted for competitive bidding

pursuant to the requirements of Sections 4.4 and 4.5

and the posting will indicate that such capacity is not

eligible for ROFR rights.

(d) If Transporter sells firm capacity pursuant to Section

4.2(b)(iii) that involves the reservation of capacity for a

future expansion project, the requirements of Section 4.7

will also be followed.