El Paso Natural Gas Company

First Revised Volume No. 1-A

Effective Date: 03/21/1991, Docket: RP91- 91-000, Status: Effective

Original Sheet No. 264 Original Sheet No. 264 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

25. CAPACITY BROKERING PROGRAM ON HIGH ISLAND OFFSHORE SYSTEM

(Continued)

25.4 Availability of Capacity - El Paso's capacity will be made

available for brokering or rebrokering on a nondiscriminatory

basis and will be assigned on the basis of an open season in

accordance with the procedures described in paragraph 25.10

of this Section 25.

25.5 Compliance by El Paso - El Paso shall continue to be

responsible to HIOS for compliance with all terms and

conditions specified under its experimental capacity

brokering program including, but not limited to, all

contractual, payment, scheduling and imbalance obligations.

25.6 Certificate Acceptance - El Paso and each Shipper shall

notify the Commission, within ten (10) days of its acceptance

of assignment of capacity, of the acceptance of the

certificate authorizing such experimental capacity brokering

program.

25.7 Rebrokering and Repackaging - Any transportation capacity

made available by El Paso for brokering may be rebrokered by

assignees. Any firm transportation capacity made available

by El Paso may be brokered or rebrokered as either firm or

interruptible transportation capacity. Firm capacity that is

brokered or rebrokered as interruptible capacity will receive

priority over HIOS' interruptible transportation customers at

the affected Receipt Point(s) or Delivery Point. Assignees

of interruptible capacity may not rebroker their

interruptible capacity as firm capacity. Any Shipper

accepting assignment from El Paso shall be obligated to El

Paso for all demand and commodity billings and any

reimbursements as defined in paragraph 25.12 as well as, but

not limited to, all contractual, payment, scheduling and

imbalance obligations in connection with such assignment as

defined in paragraph 25.5 above.

25.8 Term - The term of any assignment brokering transportation

capacity must not be less than one (1) calendar month nor

exceed the effectiveness of this Section 25. This Section 25

shall terminate, except as provided below, (i) when HIOS

places new rates into effect under Section 4(e) of the

Natural Gas Act; (ii) when any change in HIOS' rates goes

into effect as a result of a Commission initiated Section 5

rate proceeding; or (iii) January 1, 1992, whichever first

occurs; provided, however, in the event HIOS seeks to extend