El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Fourth Revised Sheet No. 291 Fourth Revised Sheet No. 291

Superseding: Third Revised Sheet No. 291

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

10. IMBALANCE MANAGEMENT (Continued)

10.6 Allocation of Receipt Quantities

The allocation of receipt quantities shall be governed by the pre-

determined allocation methods ("PDAs") set forth in this Section 10.6 or

by an applicable operational balancing agreement ("OBA").

(a) An RP Operator may elect from one of the PDA methods described in

Section 10.6(b) for the allocation of receipt quantities.

(i) Except as provided below, an RP Operator's election of a PDA

method must be received no later than the last Business Day

of the Month preceding the effective Month and shall remain

in effect until changed by the RP Operator for the first Day

of a subsequent Month. RP Operator's election shall be

effective for a time period no less than one Month and shall

be posted on Transporter's EBB.

(A) If all affected parties consent in writing or via email,

an RP Operator can change its PDA method during the

effective Month to apply retroactively to the first Day

of such Month. Transporter shall determine and notify

all parties which are affected by such a change.

(ii) Pursuant to the applicable PDA method stated in Section

10.6(b) below, if measured gas flow at a Receipt Point is

recorded and no scheduling has occurred, the metered

quantities will be recorded on a designated default TSA

elected by the RP Operator. If such default TSA does not

belong to the RP Operator, the Shipper whose TSA is elected

as the default TSA must authorize such TSA to be used prior

to the last Business Day of the Month preceding the effective

Month and such election shall remain in place until changed

by the Shipper or RP Operator for the first Day of the

subsequent Month. If authorization from Shipper is not

received by Transporter prior to the last Business Day of the

Month preceding the effective Month, then the election will

be denied.

(iii)Absent the RP Operator electing the Swing method pursuant to

Section 10.6(b)(ii), quantities at a Receipt Point shall be

allocated pro rata based on scheduled quantities as described

in Section 10.6(b)(i) below.