El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 01/01/1994, Docket: TM94-3-33-001, Status: Effective

Substitute Second Revised Sheet No. 228 Substitute Second Revised Sheet No. 228 : Superseded

Superseding: Second Revised Sheet No. 228

TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued)

18. GAS RESEARCH INSTITUTE GENERAL RESEARCH, DEVELOPMENT AND

DEMONSTRATION FUNDING UNIT ADJUSTMENT PROVISION (Continued)

18.2 Applicability (Continued)

month of service until a twelve (12) month history is established.

Thereafter, the new firm Shipper's load factor shall be based on its

twelve (12) month throughput consistent with other Shippers. For the

purposes of this Section only and as set forth in Section 18.7

hereof, Shippers with a load factor exceeding 50 percent are

classified as high load factor Shippers, and those Shippers with a

load factor of 50 percent or less are classified as low load factor

Shippers.

18.3 The GRI General RD&D Funding Unit Adjustment - The rates charged

under each of the rate schedules applicable hereunder shall include,

as appropriate, surcharge(s) for the GRI General RD&D Funding Unit

Adjustment. Such surcharge(s) shall be that General RD&D Funding

Unit amount proposed from time to time by GRI for its RD&D

expenditures and approved by the Commission. The GRI General RD&D

Funding Unit Adjustment surcharge(s) shall be effective on the

applicable Adjustment Date provided in Section 18.4 hereof without

suspension, or refund obligations.

18.4 Adjustment Date - The Adjustment Date under this Section 18 shall be

the date as approved by the Commission. On and after the Adjustment

Date El Paso shall, in accordance with the provisions of this Section

18, increase or decrease the rate applicable to each affected rate

schedule so as to include the approved GRI General RD&D Funding Unit

Adjustment to be collected during the period preceding the next

Adjustment Date.

18.5 Time and Manner of Filing and Related Report - El Paso shall file

changes in the GRI General RD&D Funding Unit Adjustment at least

thirty (30) days prior to the proposed effective date by means of

revised tariff sheets to those rate schedules contained in this FERC

Gas Tariff. Such filing shall identify the amount of said adjustment

(i.e., the GRI General RD&D Funding Unit as approved by the

Commission) and the resulting currently effective tariff rates under

each applicable rate schedule. Such filing shall be posted as

defined by the Commission and shall be served upon each of El Paso's

affected Shippers under rate schedules contained in this FERC Gas

Tariff, and upon interested state regulatory agencies.

18.6 Disposition of GRI Funding Unit Adjustment Surcharge Revenues -

El Paso shall remit to GRI the total revenues resulting from the GRI

General RD&D Funding Unit Adjustment provided by this Section 18

within fifteen (15) days following the receipt thereof from El Paso's

affected Shippers.