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

Second Revised Sheet No. 324 Second Revised Sheet No. 324

Superseding: First Revised Sheet No. 324

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

14. PENALTIES

14.2 Crediting of Penalties

(g) If Transporter buys gas quantities to maintain system linepack

as a result of imbalances owed to Transporter, the difference

between the cost of gas based on the Monthly Cash-Out Index

Price (i) when the imbalances occurred and (ii) when

Transporter bought gas to maintain linepack shall be included

in the determination of the credit amounts pursuant to

Sections 14.2(a) through 14.2(f), unless otherwise accounted

for in Transporter's Fuel mechanism pursuant to Section 13.

(h) Transporter will calculate and credit to Shippers as

appropriate, interest on monies collected pursuant to Sections

14.2(a) through 14.2(f). Such interest will be calculated in

accordance with Section 154.501(d) of the Commission's

Regulations.

(i) After collection of the additional reservation charge from an

Emergency Shipper pursuant to the provisions of Section

6.2(a)(vii) of the GT&C, Transporter will credit said

additional charges actually collected from the Emergency

Shipper to those firm Shippers that received less than their

capacity scheduled for that Day. Such credit shall be made

annually on a pro rata basis based upon the quantity of

scheduled capacity which a Shipper did not receive divided by

the sum of all such quantities for all such Shippers. This

provision does not limit the rights of a firm Shipper whose

capacity was allocated to the Emergency Shipper from seeking

damages from that Shipper, where appropriate.

(j) Transporter will file a penalty crediting report annually at

FERC.