El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Third Revised Sheet No. 311A Third Revised Sheet No. 311A

Superseding: Second Revised Sheet No. 311A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

12. BILLING AND PAYMENT (Continued)

12.4 Failure to Pay Bills. Should Shipper fail to pay all of the amount

of any bill for gas delivered under the Executed TSA when such

amount is due, as herein provided, Shipper shall pay Transporter

interest on the unpaid balance that shall accrue on each Day

beginning on the Day such payment was due at a rate of interest

equal to, and compounded in accordance with, the provisions of 18

CFR Section 154.501(d). Shipper shall submit supporting

documentation and Transporter shall apply payment per the

supporting documentation supplied by Shipper, except when payment

is made by electronic funds transfer (EFT), in which case, the

remittance detail is due within two Business Days of the payment

due date (NAESB WGQ Standard 3.3.17). If payment differs from the

amount invoiced, Shipper shall provide remittance detail with the

payment. However, unless Shipper provides documentation specifying

otherwise, if either principal or interest are due, any payments

thereafter received shall first be applied to the interest due,

then to the previously outstanding principal due and, lastly, to

the most current principal due. Shipper shall not be required to

pay interest of less than $100.

12.5 Termination of service. Subject to requirements of regulatory

bodies having jurisdiction and without prejudice to any other

rights and remedies available to Transporter under the law and the

Executed TSA, Transporter shall have the right to terminate

transportation service using the following notification procedures

without obtaining additional prior approval from the Commission if

any amount billed to Shipper remains unpaid for more than thirty

(30) Days after the due date thereof. If the defaulting Shipper

has released a portion of its capacity, then Transporter shall also

comply with the requirements of Section 9.24.