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

Seventh Revised Sheet No. 298 Seventh Revised Sheet No. 298

Superseding: Sixth Revised Sheet No. 298

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

11. SYSTEM OPERATIONAL PARAMETERS

11.1Strained and Critial Operating Condition Procedures (Continued)

(a) Strained Operating Condition (Continued)

(xi) Netting

(A) Transporter will allow a Shipper to net Delivery Point

imbalances that occurred during the SOC among the

Shipper's various TSAs delivering to the affected SOC

area subject to the following conditions:

1. Shipper attempted to resolve such Delivery Point

imbalances by: 1) submitting corrective

nominations which were subsequently confirmed in

the intraday scheduling cycles and/or 2)

requesting a flow day diversion pursuant to

Section 6.5 of the GT&C, and

2. Transporter's review after the SOC event indicates

that such netting did not allow for a greater risk

to have been placed on any other Shipper or to the

integrity of Transporter's system.

(B) Transporter will allow a Shipper to net Receipt Point

imbalances that occurred during the SOC among the

Shipper's various TSAs within the affected SOC area

subject to the following conditions:

1. Shipper attempted to resolve such Receipt Point

imbalances by submitting corrective nominations

which were subsequently confirmed in the intraday

scheduling cycles.

2. Transporter's review after the SOC event indicates

that such netting did not allow for a greater risk

to have been placed on any other Shipper or to the

integrity of Transporter's system.