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1st Rev Sub First Revised Sheet No. 234B 1st Rev Sub First Revised Sheet No. 234B : Superseded

Superseding: Substitute Original Sheet No. 234B

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

19.12 Resolution of Imbalances (Continued)

+/-10%, for which no cash-out was applicable and before

the next invoice and balance statement date, such

imbalance shall be reduced to zero (0) by cash-out

utilizing the Index Price for the month after the end of

six (6) month period reflected in Section 19.12(e).

(e) Index Prices and Cash Out

(i) Cash-out shall be based on one of four calculated

price indices, depending on whether Shipper has one

or more of the three supply basins (i.e., San Juan,

Permian or Anadarko Basins) included in its

agreement. A single price index calculated only for

a specific supply basin will be used if Shipper has

only that one supply basin in its agreement. A

System Weighted Index Price calculated for all

supply basins will be used if Shipper has more than

one supply basin in its agreement. The calculation

of each price index is set forth below:

(1) The Anadarko Basin Index Price shall be

computed using a simple average of reported

prices as delivered to El Paso's Mainline

System at Washita, Anadarko, Oklahoma, or the

Texas Panhandle from the publications

identified in Section 19.12(e)(ii);

(2) The Permian Basin Index Price shall be computed

using a simple average of reported prices as

delivered to El Paso's Mainline System at West

Texas, Permian or Waha from the publications

identified in Section 19.12(e)(ii); and

(3) The San Juan Basin Index Price shall be

computed using a simple average of reported

prices as delivered to El Paso's Mainline

System at Ignacio, San Juan or New Mexico from

the publications identified in Section

19.12(e)(ii).