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

Fourth Revised Sheet No. 262 Fourth Revised Sheet No. 262

Superseding: Third Revised Sheet No. 262

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

8. OPERATING PROVISIONS

8.1 FIRM SERVICE (Continued)

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

(E) Any nominated and confirmed quantity exceeding a

Shipper's MRQ at a Receipt Point of the MDQ at a

Delivery Point, or Path Quantity, but not exceeding its

TCD will be assigned a scheduling priority of Second

Alternate.

(F) Segmentation nominations entirely outside the Shipper's

Primary Receipt-to-Delivery Flow Path will be assigned a

scheduling priority of Second Alternate.

(G) A firm Shipper (or a Releasing Shipper and an Acquiring

Shipper participating in a capacity release) may

segment its capacity by simultaneously nominating its

full rights in a forward haul and its full rights in a

backhaul to the same Delivery Point.

(H) Transporter reserves the right at any time to control or

restrict Segmentation when such Segmentation results in

a degradation of firm service or poses a threat to the

sound operation of Transporter's system. Such

restrictions will be posted on the EBB in a timely

manner. Examples of such include: (1) a force majeure

event, (2) maintenance or physical constraints resulting

in capacity being reduced below design limit levels, (3)

a system operational upset requiring an SOC or COC, (4)

changed capacity demands resulting from facility

changes, or changes to other operational criteria such

as gas quality or receipt/delivery pressures, and (5)

the non-availability of critically sourced gas when and

where it is needed during times of normal, as well as

critical operations.

1. Transporter's control or restriction of

Segmentation does not override the scheduling

priorities of Section 6 of the GT&C.

2. Transporter's control or restriction of

Segmentation will not affect nor change

previously scheduled quantities.

3. Transporter's control or restriction of

Segmentation will not affect a segmented release

once the release has been accepted by

Transporter.