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. 287B Fourth Revised Sheet No. 287B

Superseding: Third Revised Sheet No. 287B

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (continued)

10.2(f) Imbalance Trades (continued)

(v) Only trades which have the effect of reducing

outstanding imbalances owed to or from Transporter are

permitted (i.e., the maximum quantity which may be

traded is the smaller of the excess or shortfall under

the Shipper's end-of-month imbalance affected by the

trade).

(vi) If a Shipper's imbalance is less than the amount it has

agreed to trade with another Shipper, the Shipper will

only be credited for the actual amount of the imbalance.

(vii) Transporter shall permit trade arrangements at no

additional cost to the Shippers.

(g) DP Operators who have entered into operational balancing

agreements ("OBAs") with Transporter that include the same

cash out and Strained/Critical Operating Condition provisions

as detailed in Sections 10 and 11.1 will be able to make use

of the imbalance resolution opportunities, i.e. trading and

physical make-up/paybacks, described in Sections 10.2(d) and

10.2(f). Such DP Operators do not include Operators of

Delivery Points where Transporter is required to have an OBA,

i.e., interstate pipelines and applicable intrastate pipelines

or foreign pipelines that are the functional equivalent of an

interstate or intrastate pipeline.

(h) Prior Period Measurement Adjustment(s) ("PPMA")

(i) In the event a PPMA decreases a Shipper's current

monthly imbalance, the PPMA shall be applied in the

current Month.

(ii) In the event a PPMA increases a Shipper's current

monthly imbalance, the PPMA shall be applied in the

Month following the Month in which the PPMA was made.

Should an imbalance greater than five percent (5%)

remain in the next Month (i.e., the Month following the

Month in which the PPMA was made), Section 10.3(d) shall

not be applicable to the PPMA imbalance-related

quantities. In this event, PPMA imbalance-related

quantities shall be cashed out at one hundred percent

(100%) of the applicable Cash Out Index Price.