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2nd Substitute Original Sheet No. 294 2nd Substitute Original Sheet No. 294 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE PROGRAM (Continued)

28.10 Awarding of Released Capacity (Continued)

capacity and execution of the Acquired Capacity Agreement

described in Section 28.11 hereof if that is the effective

date specified by the Releasing Shipper. If a

pre-arranged release is for less than the maximum

reservation charge(s) and reservation surcharge(s) or does

not meet all other terms and conditions required by the

Releasing Shipper, an open season is required pursuant to

Section 28.8. If a better offer is received during the

open season, as determined under Option 1, Option 2 or

Option 3, the Pre-Arranged Shipper shall have the time

specified in Section 28.8 hereof to match that offer and

if the offer is matched, the Pre-Arranged Shipper shall

become the Acquiring Shipper. If the Pre-Arranged Shipper

fails to match the better offer, then the Bidding Shipper

who presented the better offer shall become the Acquiring

Shipper.

(h) A Releasing Shipper shall retain all of the capacity under

the executed Transportation Service Agreement or Acquired

Capacity Agreement that is not acquired by an Acquiring

Shipper as the result of an open season or a pre-arranged

release.

28.11 Execution of Agreements or Amendments

(a) Upon the award of capacity, the Acquiring Shipper

obtaining released capacity shall execute electronically

an Acquired Capacity Agreement with El Paso in the form

set forth in Section 28.25 below; provided, however, such

Shipper shall also return to El Paso an executed hard copy

of the Acquired Capacity Agreement within five (5)

business days of such award of capacity. Service to be

performed under the Acquired Capacity Agreement is subject

to discontinuance if the executed contract is not provided

to El Paso within such time period. Once an Acquired

Capacity Agreement has been executed, the terms of such

Agreement are not subject to amendment, except as provided

in Section 28.8(a).