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1st Rev Sub Second Revised Sheet No. 239 1st Rev Sub Second Revised Sheet No. 239 : Superseded

Superseding: First Revised Sheet No. 239

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)

20.11 Resolution of Imbalances

For purposes of this Section 20.11 "Shipper" shall include any

party utilizing El Paso's system and services including,

without limitation, any party tendering or receiving gas under

Shipper's contract but excluding any operator of

interconnecting facilities and any volume subject to a written

assistance agreement with El Paso. El Paso and the operator

of any interconnecting facilities may cash-out imbalances,

pursuant to a written agreement between them.

(a) Imbalances Prior to Effective Date of this Provision -

Imbalances existing prior to the effective date of this

provision will be corrected in kind, as described below,

unless El Paso and Shipper agree to correct such

imbalances in cash. El Paso and Shipper shall attempt,

in good faith, to agree upon the historical imbalance and

the time period to correct such historical imbalance.

If, despite such good faith efforts, El Paso and Shipper

fail to reach written agreement upon the appropriate

corrective action within six (6) months from the

effectiveness of this section, then Shipper shall be

required to correct any remaining imbalance within sixty

(60) days, subject to operational constraints on

El Paso's system. El Paso shall extend the sixty (60)

day balancing period by one (1) day for each day that

El Paso is unable to receive or deliver scheduled

imbalance gas due to operational constraints on El Paso's

system. If after the sixty (60) day balancing period or

extension due to operational constraints Shipper has not

corrected the imbalance, then El Paso shall (i) for any

remaining imbalances where deliveries exceed receipts

("negative imbalance") charge Shipper per dth based upon

the arithmetic average of the System Weighted Index Price

for each quarter of the twelve (12) months ending

December 31, 1992 (the System Weighted Index Price for

each quarter shall be based on the method set forth in

Section 20.11(e)(i) below); or (ii) for any remaining

imbalances where receipts exceed deliveries ("positive

imbalance") retain the imbalance at no cost and free and

clear of any adverse claims by any party or any

obligation to account for such gas; provided however,

that in the event of a bona fide dispute by Shipper of