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1st Rev Sub Second Revised Sheet No. 240 1st Rev Sub Second Revised Sheet No. 240 : Superseded

Superseding: Substitute First Revised Sheet No. 240

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)

20.11 Resolution of Imbalances (Continued)

the amount of the imbalance, El Paso shall not take the

action outlined above when Shipper acts in a timely

manner to provide additional information and security for

El Paso in accordance with the following procedures.

(i) Identify Dispute: Within fifteen (15) days after

El Paso's notification of an imbalance, Shipper

shall notify El Paso by written correspondence of

the imbalance that is in bona fide dispute and of

all reasons and documentation why Shipper believes

El Paso's calculation of the imbalance is not

correct; and

(ii) Payment Security: Within thirty (30) days after

El Paso's notification of an imbalance, Shipper

shall either agree to the imbalance calculated by

El Paso without prejudice to Shipper's rights to

dispute all or part of said imbalance and subject to

return of the disputed imbalance so identified after

resolution of that dispute or Shipper shall take the

necessary actions to correct the imbalances it

concedes to be correct and furnish good and

sufficient surety bond, guaranteeing the correction

of any imbalance ultimately found owed to El Paso

after resolution of the dispute, including late

payment charges which accrue until resolution of the

dispute with respect to any negative imbalances,

which resolution may be reached either by agreement

or judgment of a court of competent jurisdiction.

If resolution of the dispute is in favor of Shipper

and the Shipper furnished a surety bond then El Paso

shall pay to Shipper the costs incurred in securing

that surety bond for this dispute including any late

payment charges actually paid to El Paso.

(b) Calculation of an Imbalance Subsequent to the

Effectiveness of this Provision - El Paso and Shippers

shall resolve an over-delivery or under-delivery of gas

to El Paso each month in accordance with this Section

20.11. Each month, El Paso will calculate a percentage