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

Second Revised Sheet No. 289A Second Revised Sheet No. 289A

Superseding: First Revised Sheet No. 289A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (continued)

10.3(d) (continued)

(ix) 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 purchased at 90% of the

applicable Cash Out Index Price;

(x) 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 purchased at 80% of the

applicable Cash Out Index Price;

(xi) 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 purchased at 70% of the

applicable Cash Out Index Price;

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

-20%, the quantity in excess of -20% will be purchased

at 60% of the applicable Cash Out Index Price.

(xiii)El Paso shall calculate the percentage for end-of-month

imbalances as follows, unless the allocation of

delivery/receipt quantities is governed by an OBA, in

which case the OBA shall apply:

(a) For Pro Rata Points (imbalance allocated pro

rata to all contracts with scheduled quantities

at the specified Delivery or Receipt Point), the

imbalance percentage shall equal the imbalance

allocated to each individual contract divided by

the scheduled quantities for such contract;

(b) For NAESB Swing Points (entire imbalance

allocated to a designated "swing contract"), the

imbalance percentage shall equal the imbalance

divided by the total scheduled quantities for

all contracts for all Shippers at the specified

Delivery or Receipt Point; and

(c) Should an agreement be allocated an imbalance at

a Pro Rata Receipt Point and at a NAESB Swing

Receipt Point, the imbalance percentage shall

equal the total imbalance of the agreement

divided by the sum of the scheduled quantities

for the agreement at the Pro Rata Receipt Point

and the scheduled quantities for all agreements

at the NAESB Swing Receipt Point.