El Paso Natural Gas Company

Second Revised Volume No. 1A

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

First Revised Sheet No. 287C First Revised Sheet No. 287C

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (continued)

10.3(a) Determination of Cash Out Quantities (continued)

(iv) Shippers may elect to cash out an imbalance at any time.

Shipper must notify Transporter of any such election

before the end of the last Business Day of the Month for

the quantities to be cashed out in accordance with

Section 10.3(a)(ii).

(b) Determination of Cash Out Liabilities - For cash out purposes

monthly imbalances will be valued at the applicable Cash Out

Index Price determined in Section 10.3(c).

(i) Monthly imbalances that are less than or equal to an

absolute value of 2% of scheduled quantities shall be

valued at the simple average of the applicable Monthly

Cash Out Index Price(s) for the Month the imbalance was

incurred and the Month the imbalance is cashed out.

(ii) Monthly imbalances that are greater than an absolute

value of 2% of scheduled quantities that are due:

(1) Transporter shall be valued at the higher of the

Monthly Cash Out Index Price for the Month the

imbalance was incurred or the Monthly Cash Out

Index Price for the Month the imbalance is cashed

out.

(2) Shipper shall be valued at the lower of the

Monthly Cash Out Index Price for the Month the

imbalance was incurred or the Monthly Cash Out

Index Price for the Month the imbalance is cashed

out.