El Paso Natural Gas Company

Second Revised Volume No. 1A

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

First Revised Sheet No. 307 First Revised Sheet No. 307

Superseding: Original Sheet No. 307

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

11. SYSTEM OPERATIONAL PARAMETERS

11.1Strained and Critial Operating Condition Procedures (Continued)

(g) Nothing in this Section 11.1 is intended to supersede provisions

of operational balancing agreements ("OBAs") at meters where

Transporter is required to have an OBA, i.e., interstate

pipelines and applicable intrastate pipelines or foreign

pipelines that are the functional equivalent of an interstate or

intrastate pipeline.

(h) If an SOC or COC has been declared or a warning of an impending

SOC or COC has been issued in a specified direction (i.e., Pack

or Draft), any hourly scheduling penalty or daily unauthorized

overrun penalty assessed for actions in the opposite direction

in the affected area will be billed at the non-Critical

Condition rate during the SOC or COC, whether or not Transporter

requested the Shipper to go out of balance in that direction,

pursuant to Section 2.8 of Rate Schedule FT-1, Section 2.6 of

Rate Schedule FT-2, Section 3.5 of Rate Schedule FTH-V, Section

3.6 of Rate Schedule FT-H, Section 3.7 of Rate Schedule NNTD

and/or Section 3.7 of Rate Schedule NNTH.

(i) COC Safe Harbor Tolerance Quantities.

(A) For purposes of determining daily unauthorized overrun

penalties during a COC, a Shipper's daily Safe Harbor

Tolerance Quantities shall equal the greater of 3%

multiplied by the TCD or 2,000 dth per Day.

(B) For purposes of determining hourly scheduling penalties

during a COC, a Shipper's hourly Safe Harbor Tolerance

Quantities shall equal the greater of 3% multiplied by the

Shipper's Hourly Scheduled Entitlement (plus any no-notice

quantities, if applicable) or 100 dth per hour and will be

applicable to the specified COC area pursuant to Section

11.1(a).

(j) If in Transporter's reasonable judgment its error (e.g.,

computer system failure or data integrity discrepancy) causes

Shipper to experience an SOC or COC Daily Imbalance Charge, such

charge will not be assessed.