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

Original Sheet No. 286A.03 Original Sheet No. 286A.03

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (continued)

10.2 Imbalance Resolution

(a) Transporter shall determine the cumulative daily imbalance

quantity applicable to each TSA through the last Day of the

Month to identify the TSA's end-of-month imbalance.

(b) Shippers shall have the opportunity to reduce any end-of-month

imbalance pursuant to the imbalance resolution procedures

described in this Section 10.2 and Section 10.3. Any

adjustments to an end-of-month imbalance must have the effect

of reducing the amount of such imbalance. The application of

any reductions shall determine a final end-of-month imbalance

for each TSA.

(c) The monthly imbalance resolution tools described in this

Section 10.2 and Section 10.3 will be applied by Transporter

in the following order:

(i) Physical imbalance make-ups and paybacks, as described

in Section 10.2(d), nominated and scheduled during Month

1 to reduce Month 1 imbalances.

(ii) Physical imbalance make-ups and paybacks, as described

in Section 10.2(d), nominated and scheduled through the

first five Business Days following monthly invoice date

and directed by Shipper to reduce a Month 1 imbalance.

(iii)Month 1 imbalance transfers, described in Section

10.2(e) below.

(iv) A TSA's end-of-month imbalances transferred between

Month 1, Month 2 and Month 3 as described in Section

10.2(e).

(v) Netting, as described in Section 10.2(e), a Shipper's

Month 1, Month 2, and Month 3 imbalances among all its

TSAs.

(vi) Imbalance trades, as described in Section 10.2(f),

applicable to Month 1 imbalances accomplished no later

than the fifth Business Day following monthly invoice

date.