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. 313 Third Revised Sheet No. 313

Superseding: Second Revised Sheet No. 313

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

12. BILLING AND PAYMENT (Continued)

12.6 In the event of a bona fide dispute between the parties concerning

the amount of an invoice submitted to a Shipper, Transporter shall

not terminate transportation service under the notification

procedure outlined above when Shipper acts in a timely manner to

provide additional information and security for Transporter in

accordance with the following procedures.

(a) Identify Dispute: Within fifteen (15) Days after the due

date of any payment, Shipper shall notify Transporter by

written correspondence of the amount billed that is in bona

fide dispute and of all reasons and supporting statements as

to why Shipper believes full payment is not now appropriate;

and

(b) Payment Security: Within thirty (30) Days after the due date

of any payment, Shipper shall either pay in full the total

amount billed without prejudice to Shipper's rights to

dispute all or part of said amount and subject to return by

Transporter of funds paid which are part of the disputed

amount so identified, with interest calculated in accordance

with Section 12.4 of the GT&C, after resolution of that

dispute in favor of Shipper, or pay the undisputed portion of

the amount billed in full and furnish documentation

identifying the basis for the dispute. Shipper shall furnish

good and sufficient payment security, acceptable to

Transporter, of all amounts ultimately found due after

resolution of the dispute, including the amount now in

dispute plus the estimated interest calculated in accordance

with Section 12.4 of the GT&C that accrues until resolution

of the dispute, which may be reached either by agreement or

judgment of a court of competent jurisdiction; provided,

however, neither Transporter nor Shipper shall calculate or

pay interest on any billed amounts of less than $10,000. If

resolution of the dispute is in favor of Shipper and the

Shipper furnished a surety bond instead of paying the

disputed amount, then Transporter shall refund to Shipper the

costs incurred in securing that surety bond for this dispute.

This section does not apply to ordinary adjustments of

overcharges and undercharges in accordance with Section 12.7

of the GT&C.