El Paso Natural Gas Company

First Revised Volume No. 1-A

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

1st Rev Original Sheet No. 234F 1st Rev Original Sheet No. 234F : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

19.12 Resolution of Imbalances (Continued)

Shipper or its suppliers shall be responsible for

reporting and payment of any royalty, tax, or other

burdens on natural gas volumes received by El Paso

and El Paso shall not be obligated to account for or

pay such burdens.

(f) Crediting of Revenues - For any net dollar amount

received net of gas and administrative costs from

cash-out assessed on El Paso or an affiliate of El Paso,

El Paso shall credit such net amount within 90 days of

the payment date to other Shippers on a pro rata basis in

accordance with the volumes transported for each Shipper.

(g) Netting of Contracts - For purposes of resolving an

imbalance with a Shipper, El Paso is willing to

negotiate, on a non-discriminatory basis, netting of gas

imbalances, adjusted to reflect a common point at which

the imbalance is held, between contracts with such

Shipper pursuant to the following conditions:

(i) Netting between gathering and pooling agreement

imbalances is negotiable as long as the imbalances

were generated in the same basin.

(ii) Netting between upstream interconnects and pooling

agreements is negotiable if the pooling agreement

has that interconnect point as a receipt point.

(iii) Netting between downstream interconnect and mainline

agreement imbalances is negotiable if the agreement

has the interconnect point as a delivery point.

(iv) Netting between Unauthorized Gas and mainline or

pooling/gathering agreement imbalances is negotiable

if both the Unauthorized Gas and imbalance were

generated in the same basin.

(v) Netting between mainline agreement imbalances (for

similar transportation service) is negotiable.