El Paso Natural Gas Company

First Revised Volume No. 1-A

Effective Date: 05/01/1990, Docket: GT90- 26-000, Status: Effective

Original Sheet No. 236 Original Sheet No. 236 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)

(b) In the event that two or more Shippers seek to obtain the

firm capacity that one or more Shippers offer to

relinquish on the Outer Continental Shelf, such capacity

shall be allocated as follows:

(i) during the open season conducted in accordance with

Order No. 509, et seq., firm capacity will be

reallocated in accordance with Section 284.304(a) of

the Commission's Regulations; and

(ii) after the open season within ten (10) days of

receiving a complete and valid request for firm

transportation, El Paso will provide the requesting

Shipper a list of all firm Shippers under contract

with El Paso. If the requesting Shipper finds an

existing Shipper willing to relinquish voluntarily

all or a portion of its firm capacity, El Paso will

reallocate that capacity on a first come/first

served basis. The relinquishing Shipper and the new

Shipper shall advise El Paso in writing of their

mutual agreement. In the event there is more than

one valid request for service on a given day, and

such requests exceed the available firm capacity,

such capacity shall be allocated among the

requesting Shippers on a pro rata basis. Any

capacity which is relinquished by an existing

Shipper and subsequently assumed by the requesting

Shipper must have compatible receipt and delivery

point obligations, unless El Paso has capacity

available at other requested receipt and delivery

points. In the event El Paso has uncommitted firm

capacity available, it may assign part or all of

that capacity before it reallocates the capacity of

existing Shippers. Upon execution of the new

Transportation Service Agreement with the new

Shipper, El Paso shall be absolved of all service

obligations to the relinquishing Shipper and shall

be deemed to have received pregranted abandonment

authorization for such relinquishing Shipper.