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. 260 Third Revised Sheet No. 260

Superseding: Second Revised Sheet No. 260

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

8. OPERATING PROVISIONS

8.1 FIRM SERVICE (Continued)

(e) Segmentation and Pathing (Continued)

(xv) General Prerequisites for Segmentation - To maintain the

integrity and reliability of Transporter's system and to

ensure that Segmentation is supported to the greatest extent

possible without detriment to, or degradation of, any

Shipper's service, the following prerequisites for

Segmentation have been established.

(A) Segmented capacity may not exceed a Shipper's TCD,

except as provided in Section 8.1(e)(xvi)(G).

(B) Segmentation is subject to the availability of capacity

and existing contractual obligations at and between

Segmentation Receipt and Delivery Points identified by

the priority of service pursuant to Section 6 of the

GT&C.

(C) Segmentation is not available for deliveries to Pools.

(xvi) Implementation of Segmentation

(A) Primary Capacity, Flow Point Secondary Capacity, Flow

Path Secondary Capacity, and Alternate Capacity, point

rights and path rights will also apply to Segmentation.

Segmented transactions will be scheduled pursuant to the

scheduling priorities of Section 6 of the GT&C, as

clarified in Section 8.1(e)(xvi)(B).

(B) Segmentation nominations for which the Receipt or

Delivery Point lies within Shipper's Primary Receipt-

to-Delivery Flow Path are to be scheduled as Primary

for the portion of the nomination that is within

Shipper's Primary Receipt-to-Delivery Flow Path and

Flow Path Secondary for any portion of the nomination

outside such Flow Path. However, Shipper may request

to acquire primary rights at the Receipt and/or

Delivery Point from Transporter, pursuant to Section

8.1(f)(iii).