El Paso Natural Gas Company

Second Revised Volume No. 1A

Effective Date: 11/01/2000, Docket: RP00-622-000, Status: Suspended

Second Revised Sheet No. 269 Second Revised Sheet No. 269 : Suspended

Superseding: First Revised Sheet No. 269

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

19.12 Resolution of Imbalances (Continued)

gas used as an offset. This provision is not

applicable to the Unauthorized Gas retained as a

penalty pursuant to Section 27 of these General

Terms and Conditions.

Prior to any offsets, El Paso at its option may

first offset any under or over-deliveries between

contracts with such Shipper.

Shipper or its suppliers shall be responsible for

reporting and payment of any royalty, tax, or other

burdens on natural gas volumes received by El Paso

and El Paso shall not be obligated to account for or

pay such burdens.

(f) Crediting of Revenues - When the aggregate value received

from all sources resulting from cash-out exceeds the cost of

gas plus administrative fees, El Paso shall credit such net

amount within 90 days of the payment date to Shippers on a

pro rata basis in accordance with the volumes transported for

each Shipper.

(g) Netting of Contracts - Netting of imbalances is defined as

the combination of positive and negative contract imbalances

for a Shipper. El Paso shall permit Shippers and their

agents to offset imbalances accruing on different contracts

held by the Shipper.