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1st Rev Original Sheet No. 234G 1st Rev Original Sheet No. 234G : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

19.12 Resolution of Imbalances (Continued)

(vi) Netting between gathering/pooling and mainline

agreements is negotiable if the gathering/pooling

basin is a receipt point on the mainline agreement.

For any specific situation not discussed above, El Paso

is willing to negotiate a transportation transaction

which could have the effect of netting imbalances.

19.13 Unauthorized Overpull Penalty

(a) A penalty shall be levied by El Paso and paid in dollars

by any receiving party (any Shipper, Local Distribution

Company, Direct Sales Customer or other party who

operates the facilities that receive the gas transported

by El Paso) who exceeds the limits specified below. Such

penalty is applicable when, in times of capacity

constraints, or when, due to unforeseen circumstances

beyond El Paso's control, El Paso has determined that its

ability to maintain scheduled deliveries to all receiving

parties is materially threatened due to insufficient

pressures in El Paso's system and El Paso so notifies

said receiving parties. Nothing herein shall limit

El Paso's right to take any further actions required to

maintain the integrity of its system operations.

(b) On any day El Paso determines that it is unable to

deliver the total volumes of gas scheduled for delivery

for the account of all Shippers, it shall have the right

to notify all receiving parties that an Unauthorized

Overpull Penalty situation exists. Contemporaneously

with, or shortly following such notice, El Paso shall

give notice to any receiving party who is taking volumes

at a level that would subject such party to an

Unauthorized Overpull Penalty as provided below.

(c) The quantity of gas subject to such penalty is that

quantity of gas taken by the receiving party which

exceeds the quantity of gas scheduled by El Paso for

delivery to such party on any day.