El Paso Natural Gas Company

First Revised Volume No. 1-A

Effective Date: 10/01/1993, Docket: RS92- 60-016, Status: Effective

Original Sheet No. 119 Original Sheet No. 119 : Superseded

RATE SCHEDULE T-3

Firm Transportation Service

(Continued)

10. MAINLINE TRANSPORTATION RESERVATION CHARGE CREDIT

If during any one-year period (the first such one-year period

beginning with the effectiveness of the Stipulation and Agreement

at Docket No. RS92-60-000, et al., is in effect and the last such

period or partial period ending the day before El Paso's next

general rate case is effective), El Paso collects more than the

dollar amount set forth in Article 2.7(b) of said Stipulation and

Agreement, attributable to costs allocated to interruptible

transportation service, each Shipper paying the maximum Mainline

Transportation Reservation Charge under this Rate Schedule shall be

eligible to receive a credit to its Mainline Transportation

Reservation Charge.

The determination as to whether any credit is due shall be

calculated as described below:

(a) From the revenues received for interruptible mainline

transportation service under Rate Schedule T-1, El Paso shall

first deduct and retain revenues equal to the sum of the

mainline transportation usage rate component of Rate Schedule

T-3 and all rate surcharges.

(b) El Paso shall retain all remaining interruptible

transportation revenues received under Rate Schedule T-1 until

such time as the total dollar amount set forth in Article

2.7(b) of the Stipulation and Agreement for the applicable

one-year period or partial period has been received.

performing steps (a) and (b) of the allocation. The remaining

90% shall be credited to firm Shippers as follows:

(i) During the amortization period applicable to Washington

Ranch Facility costs described in Section 31 of this

tariff, such remaining 90% shall be allocated among firm

Shippers paying the maximum Mainline Transportation

Reservation Charge under this Rate Schedule based on the

proportion of each Shipper's Mainline Transportation