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

Substitute Original Sheet No. 297A Substitute Original Sheet No. 297A : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE PROGRAM (Continued)

28.18 Billing (Continued)

amounts directly to El Paso. Further, the Acquiring Shipper

who has acquired capacity on a volumetric reservation rate

basis shall be billed the daily reservation rate(s) plus the

usage rate(s) and all applicable surcharges times the volumes

actually transported. Releasing Shipper shall be billed the

reservation charge(s) and reservation surcharge(s) associated

with the released capacity pursuant to its contract, with a

concurrent conditional credit for payment of the reservation

charge(s) and reservation surcharge(s) due from the Acquiring

Shipper. This bill shall include an itemization of credits

and adjustments associated with each Acquired Capacity

Agreement. Releasing Shipper shall also be billed a marketing

fee, if applicable, pursuant to the provisions of Section

28.17. An Acquiring Shipper who re-releases acquired capacity

shall pay to El Paso a marketing fee, if applicable. If an

Acquiring Shipper does not make payment to El Paso of the

reservation charge(s) and reservation surcharge(s) due as set

forth in Section 6 of this Volume No. 1-A Tariff, El Paso

shall notify the Releasing Shipper of the amount due,

including all applicable late charges authorized by Section

6.4 of this Tariff, and such amount shall be paid by the

Releasing Shipper. In addition, Releasing Shipper may

terminate the release of capacity to an Acquiring Shipper if

such Shipper fails to pay all of the amount of any bill for

gas delivered under the executed Acquired Capacity Agreement

when such amount is due, in accordance with said Section 6.4.

Once terminated, capacity and all applicable charges shall

revert to the Releasing Shipper. Notwithstanding the

provisions of Section 6.4, all payments received from an

Acquiring Shipper shall first be applied to the reservation

charge(s) due for transportation service and then to any

reservation surcharges(s), including late charges related

solely to such reservation charge(s), then to any penalty due,

then to usage charges, and last to late charges not related to

any reservation charge(s) due.

28.19 Nominations and Scheduling - An Acquiring Shipper shall

nominate and schedule natural gas for transportation service

hereunder directly with El Paso in accordance with the

applicable procedures set forth in this Volume No. 1-A

Tariff. Releasing Shipper shall give El Paso and the

Acquiring Shipper(s) notice of any recall no later than the