El Paso Natural Gas Company

First Revised Volume No. 1-A

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

1st Rev Sub First Revised Sheet No. 234A 1st Rev Sub First Revised Sheet No. 234A : Superseded

Superseding: Substitute Original Sheet No. 234A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

19.12 Resolution of Imbalances (Continued)

below. Written agreements may consist of, but are not

limited to the following provisions (i) offsetting of

imbalances; (ii) extension of a payback period within a

set time period; and (iii) negotiated price other than

the cash-out prices reflected herein.

without activity for a period of six (6) months, as

discussed in Section 19.12(d), any cumulative imbalance

at the end of any month that is within a tolerance level

less than +/-5% shall not be subject to this Section

19.12 during such month. Such imbalance shall be

forwarded to the next month's imbalance calculation. If

the cumulative imbalance for any month is equal to or

greater than +/-5%, El Paso shall notify Shipper, as

indicated in Section 19.12(b), that it is approaching a

cash-out situation for an imbalance equal to or in excess

of +/-10%. For any month that a cumulative imbalance is

equal to or in excess of +/-10%, cash-out of the

imbalance will take place provided Shipper has received a

minimum of two (2) consecutive monthly notices (minimum

of 45 days from date of first notice) alerting Shipper to

an imbalance equal to or in excess of +/-5%. El Paso

shall extend the 45-day grace period by one (1) day for

each day that El Paso is unable to receive or deliver

scheduled imbalance gas for a given contract due to

operational constraints on El Paso's system. If the

parties have not reached written agreement otherwise, the

imbalance will be reduced to +/-5% by "cash-out" the

month following the last notice, at the dollar value

calculated with the cumulative imbalance and an

established monthly price, referred to herein as the

Index Price, as determined in Section 19.12(e) below.

The Index Price shall be calculated as of the month the

imbalance first equals or exceeds the +/-10% level.

(d) Six-Month Resolution of Inactive Contracts - El Paso will

notify Shipper after three (3) consecutive months of

inactivity that at the end of any six (6) month period

that a contract between Shipper and El Paso has been

inactive and has maintained an imbalance of less than