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. 267 Third Revised Sheet No. 267

Superseding: Second Revised Sheet No. 267

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

8. OPERATING PROVISIONS

8.1 FIRM SERVICE (Continued)

(g) Rate Application for Flexible Point(s) or Re-designations

(i) In the event Shipper uses Receipt or Delivery Points not

provided for in the TSA or re-designates a primary receipt or

delivery point pursuant to Section 8.1(f)(iii), Shipper shall

be billed pursuant to Section 8.1(g). In addition, Shipper

shall pay the maximum usage charge(s), unless otherwise

provided, applicable to the Delivery Point(s) actually used

for the transportation service.

(ii) Use of Non-Discounted Points. Notwithstanding the

applicability of any contractually agreed-upon lower rate for

services using primary receipt and delivery points, all

transportation services using alternate receipt or delivery

points in the same delivery zone or a delivery zone with lower

maximum rates than the original delivery zone shall be subject

to the higher of the maximum Reservation Rate of the

applicable rate schedule for the alternate delivery point or

the contract rate, unless Transporter otherwise agrees in

writing at the time the service using such point(s) is

requested.

(iii)Out-of-Zone Daily Reservation Charge. All firm Shippers using

Delivery Points located in delivery zones with higher maximum

rates than their original delivery zones shall pay

Transporter, in addition to their contracted Daily Reservation

Charge, an incremental Out-of-Zone Daily Reservation Charge.

If the contract subject to an Out-of-Zone Daily Reservation

Charge is subject to Section 37, see Section 37 for the

description of such charge.

(A) The incremental Out-of-Zone Daily Reservation Charge,

unless Transporter agrees to discount such rates, shall

be equal to the difference between the maximum

Reservation Rate applicable to the delivery zone for

which service is provided and the Reservation Rate

provided in the TSA or zero, whichever is higher.

(B) When segmenting capacity, the Out-of-Zone Daily

Reservation Charge shall be the charges described in

Sections 8.1(g)(ii) and (iii).