El Paso Natural Gas Company

Second Revised Volume No. 1A

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

Sixth Revised Sheet No. 331 Sixth Revised Sheet No. 331

Superseding: Fifth Revised Sheet No. 331

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

18. WAIVERS

18.1 Penalty Waiver. Transporter may, in exercise of its reasonable

discretion, and on a not unduly discriminatory basis, waive all

or a part of any penalty which might otherwise apply.

Transporter shall maintain a record of all waivers granted.

18.2 Waivers of Past or Future Defaults.

(a) Transporter may, from time to time and on a not unduly

discriminatory basis, waive any of its rights hereunder and

compliance with the provisions of this Tariff. All such

waivers shall be limited to past defaults or other past

occurrences or case-by-case in advance waivers addressing

specific, short-term operational problems.

(b) Transporter shall record any such waivers in a log, which

shall be posted for public inspection on its website in

accordance with Part 358 of the Commission's Regulations.

18.3 Non-Waiver of Future Defaults

Failure to exercise any rights under this Tariff shall not be

considered a waiver of such right or of any rights in the future.

No waiver of any one or more defaults by the other party in the

performance of any of the provisions of this Tariff, or the

provisions of the service agreement incorporating the provisions

of this Tariff, shall operate or be construed as a waiver of any

other existing or future default or defaults, whether of a like

or of a different character.