El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Third Revised Sheet No. 290B Third Revised Sheet No. 290B

Superseding: Second Revised Sheet No. 290B

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (Continued)

10.5 Allocation of Delivery Quantities

(b) PDA Methods for the Allocation of Delivery Point Quantities.

(i) Pro Rata (NAESB Standard 2.3.16) - For each Gas Day, the

difference between daily quantities measured and scheduled

plus any no-notice quantities, if applicable, for all TSAs

under which gas is delivered at a Delivery Point will be

allocated on a pro rata basis to each TSA scheduled to that

Delivery Point. In addition, the related hourly components

will be included in this Pro Rata allocation process. The

Pro Rata allocation will be determined by dividing each

TSA's scheduled quantities by the total of all scheduled

quantities to the Delivery Point.

(A) This method shall be calculated by taking the total

quantities to be allocated and multiplying such

quantities by the ratio established from taking each

individual scheduled line item and dividing it by the

total of all scheduled line items applicable to the

quantities to be allocated.

(B) Transporter shall allocate pro rata among all

contracts under which gas is scheduled to a Delivery

Point all end-of-month imbalances with respect to

scheduled quantities at the Delivery Point and

calculate the percentage for such imbalances pursuant

to Section 10.3(d)(xiii)(a).

(ii) Swing (NAESB Standard 2.3.16) - For each Gas Day, each TSA

scheduled at a Delivery Point will be allocated gas

quantities at such Delivery Point equal to the scheduled

quantities (plus any no-notice quantities, if applicable)

under the TSA. Additionally, the TSA identified as the

"Swing TSA" for each Delivery Point will be allocated the

difference between 1) the sum of the total daily quantities

measured and 2) the total daily quantities scheduled plus any

no-notice quantities, if applicable, at the Delivery Point

under all rate schedules. Hourly quantities measured in

excess of Hourly Scheduled Entitlements for all TSAs under

which gas is delivered at a Delivery Point will also be

allocated to the Swing TSA.