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1st Rev Sub Original Sheet No. 279 1st Rev Sub Original Sheet No. 279 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

27. UNAUTHORIZED GAS (Continued)

27.6 Disposition of Unauthorized Gas - El Paso will approve

resolution of Unauthorized Gas volumes described in Sections

27.4 and 27.5 above as follows:

(a) With El Paso's consent, proven owners of Unauthorized Gas

may sell such Unauthorized Gas volumes to any party as

long as said party causes the gas to be transported under

an effective Transportation Service Agreement on

El Paso's system. Unless waived by El Paso on a not

unduly discriminatory basis, the party agrees to pay

El Paso the Unauthorized Gas penalty of thirty cents

($.30) per dth for the respective Unauthorized Gas

volumes being purchased, plus any applicable

transportation charge including fuel for redelivery. The

penalty of thirty cents ($.30) per dth shall not be

applicable for Unauthorized Gas volumes delivered into

El Paso's system prior to the effectiveness of this

section or for partial market wells that have been

classified as unauthorized.

(b) If said Unauthorized Gas volumes are not resolved by a

mutually agreed upon plan within the Return Period or the

Extended Return Period, as appropriate, El Paso may

retain such Unauthorized Gas volumes at no cost to itself

and free of any obligation to account therefor in kind or

otherwise to any person claiming an interest therein.

El Paso shall not assess more than one Unauthorized Gas

penalty for the same infraction.

27.7 Claiming Unauthorized Gas - To claim Unauthorized Gas volumes,

the party shall submit a written plan for resolution thereof

to El Paso within the Return Period or the Extended Return

Period, as appropriate, along with proof of ownership.

27.8 Reporting and Payment of Royalty, Tax, or other Burdens -

Shipper or its suppliers shall be responsible for reporting

and payment of any royalty, tax, or other burdens on natural

gas volumes received by El Paso and El Paso shall not be

obligated to account for or pay such burdens.