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1st Rev Sub Original Sheet No. 240I 1st Rev Sub Original Sheet No. 240I : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)

20.12 Unauthorized Overpull Penalty (Continued)

to exist. Such notice does not constitute notification

of a new penalty period pursuant to this Section 20.12(d)

and does not begin a new twenty-four (24) hour correction

period.

(e) El Paso shall establish an Unauthorized Overpull Penalty

account for each month that El Paso receives such penalty

payments for the benefit of all qualified Shippers as

provided below:

(i) A qualified Shipper is defined as a Shipper that did

not receive its scheduled volumes due to El Paso's

inability, for any reason, to make such deliveries

on days when El Paso has provided notice that an

Unauthorized Overpull Penalty situation exists, as

defined in Section 20.12(a) above.

(ii) Payments for Unauthorized Overpull Penalties shall

be credited to the Unauthorized Overpull Penalty

account. The disposition of the total dollars paid

unconditionally to El Paso in any month, as

determined in (iii) below, shall be made on a

quarterly basis as determined in (iv) below.

(iii) The Unauthorized Overpull Penalty amounts

attributable to each day shall be allocated on a pro

rata basis to all qualified Shippers that receive

less than their scheduled quantities of gas on that

day.

(iv) Each qualified Shipper shall be entitled to receive

their share of the Unauthorized Overpull Penalty

account determined in accordance with (iii) above as

a credit adjustment to the transportation service

invoice rendered by El Paso in any month in the

following calendar quarter after the penalty payment

is received by El Paso.