El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 10/01/1993, Docket: RS92- 60-018, Status: Effective

Substitute Original Sheet No. 298 Substitute Original Sheet No. 298 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

29. COMPLIANCE PLAN FOR UNBUNDLED SALES DIVISION

29.1 El Paso will organize its unbundled sales and transportation

operating employees so that they function independently of

each other to the maximum extent practicable.

29.2 El Paso Gas Marketing Company, a separate and independently

operated corporate affiliate, is designated as El Paso's agent

for purposes of conducting El Paso's gas merchant function.

El Paso and El Paso Gas Marketing Company as agent for El Paso

will conduct their business in conformance with the standards

of conduct set forth in Section 161.3 and Section 284.286 of

the Commission's Regulations and other applicable requirements

of Order Nos. 497 and 497-A.

29.3 El Paso will not provide a preference in any pipeline services

to a Shipper because that Shipper also purchases natural gas

from El Paso or from its marketing affiliate, or to a

marketing affiliate of El Paso, over Shippers who purchase

natural gas from another merchant.