El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Third Revised Sheet No. 263 Third Revised Sheet No. 263

Superseding: Second Revised Sheet No. 263

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

8. OPERATING PROVISIONS

8.1 FIRM SERVICE (Continued)

(e) Pathing and Segmentation (Continued)

(xvii) Transporter will file with the Commission, within eighteen

Months of the implementation of Pathing and Segmentation, a

report detailing the first twelve Months of such Pathing and

Segmentation activity on its system. Based on this review,

Transporter will additionally provide an analysis of the

feasibility of pathing and segmenting, on a primary basis,

the remaining portions of Transporter's mainline system.

(f) Flexible Receipt and Delivery Point(s)

For purposes of this Section 8.1(f), "firm Shipper" shall include

Shippers taking service pursuant to any of the firm rate schedules,

with the exception of Rate Schedule FT-2. Rate Schedule FT-2

service is not eligible for flexible Delivery Point treatment since

all delivery locations are full requirements locations.

(i) A firm Shipper's TSA shall designate the primary receipt

point(s), primary delivery point(s) and Primary Flow Path(s)

for service under that agreement. A firm Shipper may use any

other Receipt Point or Delivery Point not provided for in the

TSA on a lower priority (Flow Point Secondary or Alternate)

basis unless conditioned by the applicable rate schedule.

These rights are defined in Section 1 of the GT&C and in the

Pathing and Segmentation provisions of Section 8.1(e).

Shipper may use such lower priority points by submitting a

nomination to Transporter designating the point to be used.

(ii) The use of lower priority points is also subject to the

following conditions:

(A) The lower priority points will be scheduled pursuant

to the priorities of Section 6.2 of the GT&C.

(B) The lower priority points are subject to the rate

conditions specified in Section 8.1(e)(i).

using Shipper's primary receipt and delivery point(s)

and lower priority points shall not exceed Shipper's

TCD except as provided by Section 8.1(e), unless

otherwise agreed to by Transporter.