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

Sixth Revised Sheet No. 261 Sixth Revised Sheet No. 261

Superseding: Fifth Revised Sheet No. 261

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

8. OPERATING PROVISIONS

8.1 FIRM SERVICE (Continued)

(e) (xvi) Implementation of Segmentation (Continued)

(C) Segments created for a Shipper's own use or for

capacity release may overlap under the following

conditions:

1. Confirmed quantities on the overlapping Segments

that exceed the Path Quantity for that Segment

will be assigned a scheduling priority of Second

Alternate.

2. Confirmed quantities on the overlapping Segments

that exceed the TCD for that TSA will be scheduled

and billed as authorized overrun. When confirmed

nominations from a Releasing Shipper and an

Acquiring Shipper on an overlapping Segment result

in overrun transportation service, the Shipper

with the highest scheduling priority will be

scheduled first and the shipper with the lowest

scheduling priority will be assessed the overrun

charges. If the Releasing Shipper and the

Acquiring Shipper have the same scheduling

priority, both Shippers will be scheduled and

assessed overrun charges on a pro rata basis.

3. Confirmed quantities on any Segments involving

service in the Permian virtual area separately or

in total under the TSA that exceeds the TCD will

be scheduled and billed as daily authorized

overrun.

4. For Segmentation purposes, the North and South

Mainlines shall be considered to be non-threaded

parallel lines. Segmented transactions that use

these parallel lines at the same time and exceed

Shipper's Path Quantity for those parallel lines

shall be considered overlap and shall be billed

and scheduled as daily authorized overrun.

(D) If capacity allocations are required, confirmed

quantities within a Shipper's Primary Receipt-to-

Delivery Flow Path will be scheduled first (or pro rata

if more than one applicable transaction) and then any

remaining quantities will be scheduled for out-of-path

nominations (or pro rata if more than one applicable

transaction).