El Paso Natural Gas Company

Second Revised Volume No. 1A

 Contents / Previous / Next / Main Tariff Index

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

Twelfth Revised Sheet No. 288 Twelfth Revised Sheet No. 288

Superseding: Tenth Revised Sheet No. 288

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (continued)

10.3(Continued)

(c) Cash out shall be based on the monthly determination of three

calculated price indices (i.e. Monthly San Juan, Monthly

Permian and Monthly System), depending on whether Shipper has

one or more supply basins included in its TSA and whether

Shipper has elected the extended Month 1 cash out. A single

monthly price index calculated only for a specific supply

basin will be used if Shipper has only that one supply basin

in its TSA. If Shipper has only the Anadarko supply basin in

its TSA, then the Permian Basin Index Prices will be used.

System Cash Out Index Prices calculated for all supply basins

will be used if Shipper has more than one supply basin in its

TSA.

(i) The Monthly Permian Basin Cash Out Index Price shall be

determined by using the simple average of the daily mid-

point prices reported as delivered to El Paso's System

at West Texas, Permian or Waha from the publications

identified in Section 10.3(c)(v). The Monthly Permian

Basin Cash Out Index Price will be calculated by summing

the average daily prices for each day of the production

Month and dividing by the number of Days in the Month.

(ii) The Monthly San Juan Basin Cash Out Index Price shall be

determined by using the simple average of the daily mid-

point prices reported as delivered to El Paso's System

at Ignacio, San Juan, or New Mexico from the

publications identified in Section 10.3(c)(v). The

Monthly San Juan Basin Cash Out Index Price will be

calculated by summing the average daily prices for each

day of the production Month and dividing by the number

of Days in the Month.

(iii)The Monthly California Border Cash Out Index Price shall

be determined by using the higher of the daily prices of

"SoCal Gas" or "Southern California Bdr Avg" from the

publications identified in Section 10.3(c)(v). The

Monthly California Border Cash Out Index Price will be

calculated by summing the average daily prices for each

day of the production Month and dividing by the number

of Days in the Month.