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

Twelfth Revised Sheet No. 289 Twelfth Revised Sheet No. 289

Superseding: Eleventh Revised Sheet No. 289

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (continued)

10.3(d) Except as provided for in Section 10.3(a)(ii), the end-of-month

imbalances shall be cashed out based on the percentage of

scheduled quantity provided below as adjusted by Section

10.3(b). End-of-month imbalance percentages shall be

calculated based on scheduled quantities as described in

Section 10.3(d)(xiii).

(i) For any TSA with an end-of-month imbalance up to and

including +2%, the quantity will be invoiced at 100% of

the applicable Cash Out Index Price;

(ii) For any TSA with an end-of-month imbalance greater than

+2% but less than or equal to +5%, the quantity in

excess of +2% will be invoiced at 100% of the applicable

Cash Out Index Price;

(iii) For any TSA with an end-of-month imbalance greater than

+5% but less than or equal to +10%, the quantity in

excess of +5% will be invoiced at 110% of the applicable

Cash Out Index Price;

(iv) For any TSA with an end-of-month imbalance greater than

+10% but less than or equal to +15%, the quantity in

excess of +10% will be invoiced at 120% of the

applicable Cash Out Index Price;

(v) For any TSA with an end-of-month imbalance greater than

+15% but less than or equal to +20%, the quantity in

excess of +15% will be invoiced at 130% of the

applicable Cash Out Index Price;

(vi) For any TSA with an end-of-month imbalance greater than

+20%, the quantity in excess of +20% will be invoiced at

140% of the applicable Cash Out Index Price.

(vii) For any TSA with an end-of-month imbalance up to and

including -2%, the quantity will be purchased by

Transporter at 100% of the applicable Cash Out Index

Price;

(viii) For any TSA with an end-of-month imbalance greater than

-2% but less than or equal to -5%, the quantity in

excess of -2% will be purchased at 100% of the

applicable Cash Out Index Price;