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

Thirteenth Revised Sheet No. 290A Thirteenth Revised Sheet No. 290A

Superseding: Twelfth Revised Sheet No. 290A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (Continued)

10.3 (Continued)

(e) Unless otherwise accounted for in Transporter's fuel mechanism

pursuant to Section 13, total cash out revenues received that

are in excess of Transporter's gas costs during a calendar year

pursuant to the operation of this section shall be credited to

Transporter's firm and interruptible transportation Shippers on

a pro rata basis based on the total transportation revenues

paid by each Shipper.

(1) If Transporter buys gas quantities to maintain system

linepack as a result of the cash out of imbalances owed to

Transporter, the difference between the cost of gas based

on the Monthly Cash Out Index Price (i) when the cash-outs

occurred and (ii) when Transporter bought gas to maintain

linepack shall be included in the determination of the gas

costs described in Section 10.3(e).

(2) The credit, if any, shall be made not later than the March

accounting Month following the applicable calendar year

end.

(3) Interest shall be accrued at rates set pursuant to 18

C.F.R. Section 154.501(d)(1).

(4) Gas costs exceeding total cash out revenues received

during a calendar year shall be transferred to the next

calendar year for offset against future cash out revenues.

10.4 Maintenance of System Integrity. Nothing in this Tariff limits

Transporter's right to take action that may be required to adjust

receipts and deliveries of gas in order to alleviate conditions

that threaten the integrity of its system, including maintenance of

service to higher-priority Shippers.