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

Fifth Revised Sheet No. 288A Fifth Revised Sheet No. 288A

Superseding: Fourth Revised Sheet No. 288A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (Continued)

10.3(c) (Continued)

(iv) The Monthly System Cash Out Index Price shall be computed

by using the weighted average of the Monthly Permian

Basin Index Price, the Monthly San Juan Basin Index

Price, and the Monthly California Border Cash Out Index

Price. The weighting is based on the quantities entering

El Paso's System in each Production Area and scheduled as

a California receipt during the previous quarter and will

be updated quarterly.

(v) The trade publications referenced above are: Platt's Gas

Daily (Daily Price Survey) and Natural Gas Intelligence

Daily Gas Price Index (Cash Market Prices).

(vi) Transporter will report on its EBB, on a daily basis, the

applicable Cash Out Index Prices as updated for the most

recent published data available. No later than the 15th

Day of each Month, Transporter will report the final Cash

Out Index Prices applicable to the previous business

Month. In the event any of the publications cease

publication or to the extent a publication fails to

report the applicable spot prices, then Transporter may

substitute prices reported in a similar independent

publication or continue the pricing formula using the

remaining publication. If there is a permanent change in

a publication, Transporter will file to revise its Tariff

to identify a new publication within 60 Days of the

change. Changes in the name, format or other method of

reporting by the publications in Section 10.3(c)(v) above

that do not materially affect the content shall not

affect their use hereunder.