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

Fifth Revised Sheet No. 302 Fifth Revised Sheet No. 302

Superseding: Fourth Revised Sheet No. 302

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

11. SYSTEM OPERATIONAL PARAMETERS

11.1Strained and Critial Operating Condition Procedures (Continued)

(b) Critical Operating Condition (Continued)

(vii) Supply Failure

(A) Should a Draft COC be declared due entirely or in

significant part to the failure of supplying

Interconnects to make scheduled deliveries to

Transporter (Transporter's system receipts fail) and if

such supply failure is specifically noted in the COC

declaration, any Shipper that generated a net pack daily

imbalance within the declared COC area and whose actions

during the COC are consistent with the condition

described in Section 11.1(b)(vi)(A)(2) will have its

Delivery Point imbalances netted within that COC area

for that Day.

(B) Should a Draft COC be declared due entirely or in

significant part to the failure of supplying

Interconnects to make scheduled deliveries to

Transporter (Transporter's system receipts fail) and if

such supply failure is specifically noted in the COC

declaration, any Shipper that generated a net pack daily

imbalance within the declared COC area and whose actions

during the COC are consistent with the condition

described in Section 11.1(b)(vi)(B)(2) will have its

Receipt Point imbalances netted within that COC area for

that Day.

(viii) COC Daily Imbalance Charge

(A) During a COC, an COC Daily Imbalance Charge will be

assessed to any Shipper in the COC area whose daily

imbalance quantity at a Delivery Point is more than 3%

of scheduled quantities or 2,000 dth, whichever is

greater, unless reduced or eliminated pursuant to the

provisions of Section 11.1(b)(vi) or 11.1(b)(vii). 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.

(B) During a COC, a COC Daily Imbalance Charge will be

assessed to any Shipper in the COC area whose daily

imbalance quantity at a Receipt Point is more than 3% of

scheduled quantities or 2,000 dth, whichever is greater,

unless reduced or eliminated pursuant to the provisions

of Section 11.1(b)(vi) or 11.1(b)(vii).