El Paso Natural Gas Company

First Revised Volume No. 1-A

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

2nd Substitute Original Sheet No. 293 2nd Substitute Original Sheet No. 293 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE PROGRAM (Continued)

28.10 Awarding of Released Capacity (Continued)

(d) If Option 2 is selected by the Releasing Shipper, then, at

the end of the open season, El Paso shall calculate a Net

Present Value for each bid received, with the bids being

ranked in order from the highest to the lowest Net Present

Value.

(e) If no bids are received which meet or exceed all of the

minimum conditions specified by the Releasing Shipper, no

capacity shall be awarded. If any bids are received

which meet or exceed the Releasing Shipper's minimum

criteria, El Paso shall rank all such bids in accordance

with the criteria specified in the notice of release and

shall award the capacity to the successful Bidding

Shipper(s). Any Bidding Shipper who would receive less

than the minimum acceptable bid volume shall not be

obligated to accept released capacity.

(f) If bids from two or more Bidding Shippers result in bids

of equal score, the Acquiring Shipper(s) shall be

determined based upon the tie breaking method designated

by the Releasing Shipper, and if none is specified, by a

lottery. The lottery shall be conducted by El Paso on a

non-discriminatory basis. Capacity shall be awarded in

accordance with the order of draw, with capacity awarded

to the first-drawn Bidding Shipper up to the volume bid by

such Shipper, and, if any released capacity remains after

such award, it shall be offered to other Bidding Shippers

in the lottery in accordance with the order of draw. Any

Bidding Shipper who, by virtue of its place in the order

of draw, receives less than the minimum acceptable bid

volume shall not be obligated to accept released

capacity. The results of the lottery shall be posted on

El Paso's electronic bulletin board.

(g) If a pre-arranged release is for the maximum reservation

charge(s) and reservation surcharge(s) under this Volume

No. 1-A Tariff, as in effect from time to time, and meets

all other terms and conditions imposed by the Releasing

Shipper, then the Pre-Arranged Shipper shall become the

Acquiring Shipper. Service to such Acquiring Shipper may

begin on the next scheduling day after award of the