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

Ninth Revised Sheet No. 287A Ninth Revised Sheet No. 287A

Superseding: Eighth Revised Sheet No. 287A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (Continued)

10.2 Imbalance Resolution (Continued)

(e) Monthly Imbalance Transfers - Unless otherwise agreed, at the

end of each Month, Transporter shall review each Shipper's

TSAs and transfer imbalances among such TSAs to provide the

Shipper with the lowest possible imbalance quantity on all

TSAs. A Shipper's imbalances may be netted among its

contracts, if the netting does not serve to effectuate

transportation across persistent system capacity constraints.

Transporter will first transfer imbalances among a Shipper's

TSAs under the same rate schedule. Thereafter, Transporter

will transfer imbalances among that Shipper's TSAs under all

rate schedules. No imbalance under any TSA will be increased

as the result of a transfer. In each category, and to the

extent possible, larger imbalances shall be transferred first.

Imbalance Transfers will occur in the following order:

(i) A Shipper's Month 1 end-of-month TSA imbalances will be

automatically netted.

(ii) A Shipper's Month 1 end-of-month imbalance will be

automatically netted against any outstanding Small

Quantity Imbalance, as described in Section

10.3(a)(iii).

(iii)A TSA's Month 2 end-of-month imbalance will be

automatically netted against the TSA's Month 1

imbalance.

(iv) A TSA's Month 3 end-of-month imbalance will be

automatically netted against the TSA's Month 1

imbalance.

(v) A Shipper's Month 2 end-of-month imbalance will be

automatically netted against the Shipper's Month 1

imbalances, if any.

(vi) A Shipper's Month 3 end-of-month imbalance will be

automatically netted against the Shipper's Month 2

imbalances, if any.