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

Third Revised Sheet No. 295 Third Revised Sheet No. 295

Superseding: Substitute Second Revised Sheet No. 295

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

11. SYSTEM OPERATIONAL PARAMETERS

11.1Strained and Critial Operating Condition Procedures (Continued)

(a) Strained Operating Condition (Continued)

(viii)(B) For purposes of determining daily unauthorized overrun

penalties, a Shipper's daily Safe Harbor Tolerance

Quantities shall equal the greater of the posted SOC

Safe Harbor Tolerance Percentage, pursuant to Section

11.1(e), multiplied by the TCD or 2,000 dth per Day.

Such posted Safe Harbor Tolerance Percentage shall not

be less than 4% or greater than 7%.

(C) For purposes of determining hourly scheduling penalties,

a Shipper's hourly Safe Harbor Tolerance Quantities

shall equal the greater of the posted SOC Safe Harbor

Tolerance Percentage, pursuant to Section 11.1(e),

multiplied by the Shipper's Hourly Scheduled Entitlement

(plus any no-notice quantities, if applicable) or 100

dth per hour. Such posted Safe Harbor Tolerance

Percentage shall not be less than 4% or greater than 10%

and will be applicable to the specified SOC area

pursuant to this Section 11.1(a).

(ix) During an SOC, an SOC Daily Imbalance Charge will be assessed

to any Shipper in the SOC area whose daily imbalance quantity

exceeds the threshold level stated in the Notice of SOC,

unless reduced or eliminated pursuant to the provisions of

Sections 11.1(a)(x), 11.1(a)(xi) or 11.1(a)(xii). Such charge

will be determined by multiplying the daily imbalance quantity

by the Critical Condition Rate, pursuant to Section 1.10A of

the GT&C and the Statement of Rates. The calculation of the

quantities not subject to penalty will be consistent with

Section 10.5(b)(ii)(C)(1) and Section 10.6(b)(ii)(E) if the

Shipper has elected the NAESB Swing method.

(A) Pursuant to the Statement of Rates, the SOC Daily

Imbalance Rate shall be determined based on the lower of

the applicable delivery variance quantity or the

delivery variance percentage. The charge assessed shall

be determined based on a factor of the Critical

Condition rate pursuant to Section 1.10A of the GT&C.