El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 04/01/1993, Docket: RS92- 60-011, Status: Effective

2nd Substitute Original Sheet No. 291 2nd Substitute Original Sheet No. 291 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE PROGRAM (Continued)

28.10 Awarding of Released Capacity (Continued)

(ii) OPTION 1 - Weighted Composite Bid Calculation

Bidding

Releasing Releasing Bidding Shipper's

Shipper's Shipper's Shipper's Actual Bid

Assigned Bid Maximum Bid Actual Bid Weighting

Weighting (%) Values Values (%)

(a) (b) (c) (d) *

(1) Volume in Mcf

(2) Term Stated in

Months

(3) Reservation

Charge(s) and

Reservation

Surcharge(s)

Actual Weighted

Composite Bid %

c

* d = b x a

(iii) OPTION 2 - Net Present Value Calculation

R x 1 - (1 + i)-n x V = present

i value

where: i = interest rate per month using the current

Commission interest rate as defined in 18 C.F.R.

Section 154.67(c)(2)(iii)(A)

n = term of the agreement, in months

R = the Reservation Charge(s) and Reservation

Surcharge(s) bid

V = volume stated in Mcf or