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

Third Revised Sheet No. 224 Third Revised Sheet No. 224

Superseding: Second Revised Sheet No. 224

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

4. REQUESTS FOR SERVICES (Continued)

4.18 Negotiated Rate Authority

(a) Authority and Conditions. (Continued)

(v) Prior to or on the same Day as commencing service at

such Negotiated Rate, Transporter shall file either:

(i) the Negotiated Rate agreement; or (ii) a tariff

provision advising the Commission of such Negotiated

Rate agreement, stating the exact legal name of

Shipper and specifying the actual Negotiated Rate or

rate formula included in such agreement.

(b) Impact on Other Provisions. A Shipper paying for service

under a Negotiated Rate that is higher than the maximum rate

for such service stated on the Statement of Rates is deemed

to have paid the maximum rate for purposes of scheduling and

capacity allocation pursuant to Section 6 of the GT&C, for

purposes of evaluating right-of-first-refusal bids pursuant

to Section 4.14, and for purposes of selling capacity

pursuant to Section 4. The highest rate the Shipper must

match for right-of-first-refusal matching purposes is the

maximum rate set forth in this Tariff.

(c) Accounting for Costs and Revenues. Transporter will maintain

accounting records so that revenues can be tracked to each

Negotiated Rate transaction.

(d) Discount-Type Adjustment. In situations where Transporter

has granted a market justified discount to the recourse rate

and subsequently converted the service agreement to a

negotiated rate service agreement, Transporter may seek a

discount type adjustment. Such adjustment would be based on

the greater of: (i) the negotiated rate revenues received or

(ii) the discounted recourse rate revenues which otherwise

would have been received.