El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Fourth Revised Sheet No. 225 Fourth Revised Sheet No. 225

Superseding: Third Revised Sheet No. 225

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

4. REQUESTS FOR SERVICES (Continued)

4.18 Negotiated Rate Authority

(d) Discount-Type Adjustment (Continued)

(i) A discount adjustment to recourse rates shall only be

allowed to the extent that Transporter can meet the

standards required of an affiliate discount-type

adjustment, including requiring that Transporter shall

have the burden of proving that any discount granted

is required to meet competition.

Transporter shall be required to demonstrate that any

discount-type adjustment does not have an adverse

impact on recourse rate Shippers by:

(A) Demonstrating that, in the absence of

Transporter's entering into such non-conforming

Negotiated Rate agreement providing for such

discount, Transporter would not have been able

to contract for such capacity at any higher

rate, and that recourse rates would otherwise

be as high or higher than recourse rates which

result after applying the discount adjustment;

(B) Making another comparable showing that the non-

conforming Negotiated Rate discount contributes

more fixed costs to the system than could have

been achieved without the discount.

(ii) Transporter may also seek to include in a discount-

type adjustment non-conforming Negotiated Rate TSAs

that were converted from pre-existing discounted Part

284 TSAs to non-conforming Negotiated Rate TSAs.

4.19 Statutory Regulation. The respective obligations of Transporter

and Shipper under the Executed TSA are subject to the laws, orders,

rules and regulations of duly constituted authorities having

jurisdiction.