El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 03/21/1991, Docket: RP91- 91-001, Status: Effective

Substitute Original Sheet No. 265 Substitute Original Sheet No. 265 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

25. CAPACITY BROKERING PROGRAM ON HIGH ISLAND OFFSHORE SYSTEM

(Continued)

the term of its experimental capacity brokering program and

the Commission approves such extension, this Section 25, with

any conforming changes necessary, shall remain in effect for

the period of such extension.

25.9 Rate - The rate charged for any brokered or rebrokered

capacity may be less than, but may not exceed, the as-billed

rate charged for such capacity to El Paso as a Rate Schedule

T shipper as identified on Sheet No. 8 of HIOS' Volume No. 1

Tariff. Shipper will be allowed to choose between a

"blended" one-part rate and the as-billed rate for billing

purposes as provided by HIOS' Volume No. 1 Tariff. The rate

charged for any firm capacity brokered or rebrokered as

interruptible capacity must be a "blended" one part,

volumetric rate which shall not be greater than HIOS' maximum

rate for Rate Schedule IT service and shall not be less than

HIOS' minimum rate for IT service as set forth on Sheet No. 8

of HIOS' Volume No. 1 Tariff.

25.10 Open Season - Upon the effectiveness of this Section 25,

El Paso shall conduct an open season for a period of fifteen

(15) days. When El Paso decides that capacity will be

brokered on HIOS, El Paso shall post a notice of such

availability on its electronic bulletin board. In order for

a Shipper to participate in this open season, Shipper shall

submit to El Paso a completed bid form in the form set forth

in paragraph 25.17 below.

If Shippers' requests for capacity exceed the available firm

capacity during the open season, such capacity shall be

allocated among the requesting Shippers on a pro-rata basis.

After the open season, El Paso will allocate all requests for

available capacity on a first-come/first-served basis.