El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Original Sheet No. 328 Original Sheet No. 328

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

16. RESERVATION CHARGE CREDIT (Continued)

16.3 Reservation charge credits shall be calculated as follows (Contd.):

(b) During periods when Transporter does not experience a force

majeure event:

(i) The reservation charge credit shall be the product of

the quantity determined in Section 16.3(a) multiplied by

the contract reservation rate stated on a daily basis.

event:

(i) The reservation charge credit shall be the product of

the quantity determined in Section 16.3(a) multiplied by

the contract reservation rate stated on a daily basis

times the percent of the currently effective reservation

rates that represent Transporter's equity return and

associated income taxes. This percentage will be re-

determined on the effective date of a general system-

wide rate change. Effective January 1, 2009, the

percentage shall be 38.47%.

(ii) Reservation charge credits under discounted TSAs shall

be applicable only to that portion of the discounted

rate that exceeds the current non-equity return and

associated tax portion of the maximum reservation rate.

This percentage will be re-determined on the effective

date of a general system-wide rate change. Effective

January 1, 2009, the percentage shall be 61.53%.

(d) Any reservation charge credit payable shall be reflected on

the Shipper's monthly invoice and shall be applied to offset

any outstanding transportation past due balances owed by

Shipper.