El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Fourth Revised Sheet No. 272 Fourth Revised Sheet No. 272

Superseding: Third Revised Sheet No. 272

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

8. OPERATING PROVISIONS

8.1 FIRM SERVICE (Continued)

(j) Daily Unauthorized Overrun Penalties. Daily unauthorized overrun

penalties will be imposed on daily quantities as set forth in the

applicable rate schedule. In cases where HEEN has been scheduled,

the calculation for daily unauthorized overrun penalties will not

include HEEN scheduled quantities. Daily unauthorized overrun

penalties resulting from a bump of a scheduled quantity during non-

critical periods shall only be subject to maximum daily authorized

overrun rates as stated on the Statement of Rates.

(k) East Valley Lateral in Docket No. CP06-57-000. El Paso and Salt

River Project Agricultural Improvement and Power District ("SRP")

are parties to a purchase and sale agreement whereby El Paso has

agreed to purchase the East Valley Lateral from SRP. Under the

terms of this agreement, SRP has two options to re-purchase from El

Paso an undivided interest in a portion of the East Valley Lateral.

Except for service to SRP, El Paso will not contract for firm

transportation service using the capacity subject to the re-

purchase options for a term longer than six months. Furthermore,

such capacity shall not be the subject of any ROFR right by a

shipper holding such capacity upon expiration of its agreement.