El Paso Natural Gas Company

First Revised Volume No. 1-A

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

1st Rev Sub Second Revised Sheet No. 234 1st Rev Sub Second Revised Sheet No. 234 : Superseded

Superseding: Substitute First Revised Sheet No. 234

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

19.12 Resolution of Imbalances (Continued)

shall pay to Shipper the costs incurred in securing

that surety bond for this dispute including any late

payment charges actually paid to El Paso.

(b) Calculation of an Imbalance Subsequent to the

Effectiveness of this Provision - El Paso and Shippers

shall resolve an over-delivery or under-delivery of gas

to El Paso each month in accordance with this Section

19.12. Each month, El Paso will calculate a percentage

imbalance for each individual contract for each Shipper

by dividing the total cumulative imbalance quantities in

excess of 1,000 dth, attributable to the imbalance amount

for such contract (numerator) by the most recent calendar

year monthly average of quantities actually delivered

(denominator). Such average is derived by dividing the

quantities delivered during the calendar year by the

number of months the quantities were delivered; provided

however, if no quantities have been delivered during the

last calendar year to Shipper, the monthly average shall

be Shipper's total Transportation Service Agreement

Maximum Daily Quantity multiplied by 30 days. The result

of such calculation will be included on El Paso's

imbalance statement to Shipper, or its designee, and

shall serve as notification to the Shipper of an

imbalance. If an imbalance is equal to or greater than

+/-5%, the Shipper is provided additional notice on said

statement that if such imbalance continues and becomes

equal to or greater than +/-10%, the Shipper is subject

to cash-out of the imbalance pursuant to this Section

19.12; provided, however, that in no event shall cash-out

be assessed when the amount of the imbalance does not

exceed 1,000 dth, unless the parties mutually agree

otherwise; provided, further, if it is determined that El

Paso has caused in any month an imbalance equal to or

greater than +/- 10% of the denominator determined above,

El Paso will cash-out that portion of the imbalance at

100% of the Index Price. In addition, cash-out of

imbalances will not be mandatory if the parties have

reached written agreement on the resolution of the

imbalance provided such agreement is final prior to the

triggering of cash-out as specified in Section 19.12(c)