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1st Rev Sub First Revised Sheet No. 240C 1st Rev Sub First Revised Sheet No. 240C : Superseded

Superseding: 1st Substitute Original Sheet No. 240C

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)

20.11 Resolution of Imbalances (Continued)

Permian or Anadarko Basins) included in its

agreement. A single price index calculated only for

a specific supply basin will be used if Shipper has

only that one supply basin in its agreement. A

System Weighted Index Price calculated for all

supply basins will be used if Shipper has more than

one supply basin in its agreement. The calculation

of each price index is set forth below:

(1) The Anadarko Basin Index Price shall be

computed using a simple average of reported

prices as delivered to El Paso's Mainline

System at Washita, Anadarko, Oklahoma, or the

Texas Panhandle from the publications

identified in Section 20.11(e)(ii);

(2) The Permian Basin Index Price shall be computed

using a simple average of reported prices as

delivered to El Paso's Mainline System at West

Texas, Permian or Waha from the publications

identified in Section 20.11(e)(ii); and

(3) The San Juan Basin Index Price shall be

computed using a simple average of reported

prices as delivered to El Paso's Mainline

System at Ignacio, San Juan or New Mexico from

the publications identified in Section

20.11(e)(ii).

(4) The System Weighted Index Price shall be

computed monthly by using the weighted average

of the Anadarko Basin Index Price, the Permian

Basin Index Price, and the San Juan Basin Index

Price. The weighting is based on the volumes

entering El Paso's system in each basin during

the previous quarter and will be updated

quarterly.